Armstrong World Industries Inc (AWI)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	1,842,700	1,804,000	1,691,500	1,672,400	1,713,800	1,712,300	1,687,900	1,687,200	1,739,400	1,734,000	1,708,100	1,710,000	1,704,900	1,716,700	1,715,300	1,718,500	1,633,700	1,544,300	1,590,300	1,493,300
Total stockholders’ equity	US$ in thousands	757,100	717,000	626,800	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
Financial leverage ratio		2.43	2.52	2.70	2.83	2.93	3.02	3.10	3.15	3.34	3.29	3.18	3.29	3.26	3.45	3.62	3.81	3.69	3.83	4.29	4.09

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,842,700K ÷ $757,100K
= 2.43

Armstrong World Industries Inc's financial leverage ratio has shown a declining trend from 4.09 in December 2019 to 2.43 in December 2024. This indicates a decreasing reliance on debt to finance the company's assets over the period under review. A lower financial leverage ratio suggests a stronger financial position and reduced financial risk, as the company is relying less on borrowed funds. The decreasing trend in the financial leverage ratio may be attributed to the company's efforts to pay down its debt or improve its profitability, which has resulted in a more stable capital structure. Overall, the decreasing trend in Armstrong World Industries Inc's financial leverage ratio is a positive signal for investors and stakeholders, indicating improved financial strength and stability.