Armstrong World Industries Inc (AWI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,842,700 | 1,672,400 | 1,687,200 | 1,710,000 | 1,718,500 |
| Total stockholders’ equity | US$ in thousands | 757,100 | 591,800 | 535,000 | 519,700 | 450,900 |
| Financial leverage ratio | 2.43 | 2.83 | 3.15 | 3.29 | 3.81 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,842,700K ÷ $757,100K
= 2.43
The financial leverage ratio of Armstrong World Industries Inc has shown a declining trend over the past five years. In particular, the ratio has decreased from 3.81 in December 2020 to 2.43 in December 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests that the company is becoming less risky in terms of its debt obligations and may have a stronger financial position. It is important to continue monitoring this trend to ensure that the company maintains a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2024