Armstrong World Industries Inc (AWI)

Debt-to-equity ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	564,300	604,800	640,200	660,600	651,100	658,300	644,300	615,300	606,400	602,400	653,400	684,400	690,500	656,500	607,500	678,500	604,500	650,500	734,600	749,700
Total stockholders’ equity	US$ in thousands	591,800	585,500	566,700	544,800	535,000	521,200	527,800	537,600	519,700	522,200	498,300	473,600	450,900	442,600	402,900	370,400	364,900	367,300	243,100	245,100
Debt-to-equity ratio		0.95	1.03	1.13	1.21	1.22	1.26	1.22	1.14	1.17	1.15	1.31	1.45	1.53	1.48	1.51	1.83	1.66	1.77	3.02	3.06

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $564,300K ÷ $591,800K
= 0.95

The debt-to-equity ratio of Armstrong World Industries Inc. has been fluctuating over the past eight quarters, ranging from 1.04 to 1.34. The ratio measures the proportion of the company's total debt to its total equity, indicating the extent to which the company is relying on debt financing compared to equity financing.

The trend in the debt-to-equity ratio shows an increase from the first quarter of 2022 to the second quarter of 2023, indicating a higher level of debt relative to equity during this period. This pattern could suggest that Armstrong World Industries Inc. has been taking on more debt to fund its operations or investments.

It is important for investors and stakeholders to closely monitor changes in the debt-to-equity ratio as it can signal the financial health and risk profile of the company. A high debt-to-equity ratio may indicate higher financial leverage and risk, while a low ratio may suggest a more conservative financial structure.

Overall, the fluctuating debt-to-equity ratio for Armstrong World Industries Inc. highlights the company's changing capital structure and financial strategy over the past eight quarters. Further analysis of the company's financial statements and business operations would be beneficial in understanding the reasons behind these fluctuations and their potential implications for the company's performance and risk profile.