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.