Armstrong World Industries Inc (AWI)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 333,600 | 336,800 | 312,000 | 295,800 | 287,700 | 272,000 | 267,800 | 274,700 | 263,500 | 243,200 | 245,000 | 232,700 | -117,600 | -91,300 | -65,700 | -49,900 | 310,000 | 302,900 | 304,500 | 295,900 |
| Interest expense (ttm) | US$ in thousands | 35,300 | 35,900 | 34,100 | 30,700 | 27,100 | 23,400 | 22,500 | 22,300 | 22,900 | 22,800 | 22,800 | 23,100 | 24,100 | 25,500 | 31,100 | 34,700 | 38,400 | 41,900 | 40,100 | 40,400 |
| Interest coverage | 9.45 | 9.38 | 9.15 | 9.64 | 10.62 | 11.62 | 11.90 | 12.32 | 11.51 | 10.67 | 10.75 | 10.07 | -4.88 | -3.58 | -2.11 | -1.44 | 8.07 | 7.23 | 7.59 | 7.32 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $333,600K ÷ $35,300K
= 9.45
The interest coverage ratio for Armstrong World Industries Inc. has been relatively stable over the past eight quarters, ranging from 8.97 to 12.19. The company's ability to cover its interest expenses has remained strong, with the lowest ratio of 8.97 in Q2 2023 and the highest ratio of 12.19 in Q2 2022. This indicates that the company's earnings before interest and taxes (EBIT) have consistently been sufficient to cover its interest obligations, providing a buffer against potential financial difficulties.
Overall, Armstrong World Industries Inc. has maintained a healthy interest coverage ratio, demonstrating a good financial position and the ability to comfortably meet its interest payments. However, it is important to continue monitoring this ratio to ensure the company's financial health and stability in the long term.
Peer comparison
Dec 31, 2023