Armstrong World Industries Inc (AWI)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,672,400 | 1,687,200 | 1,710,000 | 1,718,500 | 1,493,300 |
| Total stockholders’ equity | US$ in thousands | 591,800 | 535,000 | 519,700 | 450,900 | 364,900 |
| Financial leverage ratio | 2.83 | 3.15 | 3.29 | 3.81 | 4.09 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,672,400K ÷ $591,800K
= 2.83
Armstrong World Industries Inc.'s financial leverage ratio has been gradually decreasing over the past five years, from 4.09 in 2019 to 2.83 in 2023. This decreasing trend indicates that the company has been relying less on debt financing in relation to its equity over this period. A lower financial leverage ratio generally suggests a lower level of financial risk as the company is less dependent on debt to fund its operations and investments. It also indicates a stronger equity position and potentially more stable financial health. However, it is essential to analyze the components of the ratio in greater detail to fully understand the company's capital structure and financial stability.
Peer comparison
Dec 31, 2023