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.
Peer comparison
Dec 31, 2023