Armstrong World Industries Inc (AWI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.34 | 0.35 | 0.37 | 0.39 | 0.39 | 0.38 | 0.37 | 0.36 | 0.35 | 0.35 | 0.38 | 0.40 | 0.40 | 0.40 | 0.39 | 0.43 | 0.40 | 0.43 | 0.39 | 0.39 |
| Debt-to-capital ratio | 0.49 | 0.51 | 0.53 | 0.55 | 0.55 | 0.56 | 0.55 | 0.53 | 0.54 | 0.54 | 0.57 | 0.59 | 0.60 | 0.60 | 0.60 | 0.65 | 0.62 | 0.64 | 0.75 | 0.75 |
| Debt-to-equity ratio | 0.95 | 1.03 | 1.13 | 1.21 | 1.22 | 1.26 | 1.22 | 1.14 | 1.17 | 1.15 | 1.31 | 1.45 | 1.53 | 1.48 | 1.51 | 1.83 | 1.66 | 1.77 | 3.02 | 3.06 |
| Financial leverage ratio | 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 | 4.11 | 7.77 | 7.93 |
Armstrong World Industries Inc.'s solvency ratios indicate its ability to meet its long-term debt obligations. The company's debt-to-assets ratio has shown a slightly decreasing trend from Q4 2022 to Q4 2023, standing at 0.37 in the latest quarter. This suggests that 37% of the company's assets are financed by debt. The debt-to-capital ratio has also decreased over the quarters, with the latest figure at 0.51, indicating that 51% of the company's capital structure is debt-financed.
The debt-to-equity ratio has exhibited an increasing trend over the quarters, reaching 1.04 in Q4 2023, implying that the company's debt is slightly higher than its equity. However, this ratio has not increased significantly, indicating a relatively stable capital structure in terms of debt and equity mix. The financial leverage ratio, which measures the company's total assets relative to shareholders' equity, has been fluctuating but shows a downward trend from 3.34 in Q3 2022 to 2.83 in Q4 2023. This may indicate improved financial resilience and reduced reliance on debt financing.
Overall, the solvency ratios of Armstrong World Industries Inc. suggest a moderate level of debt relative to its assets, capital, and equity, with a trend towards lower leverage and improved financial stability. Investors and creditors may take note of these ratios to assess the company's long-term financial health and ability to honor its debt obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Armstrong World Industries Inc. has been relatively consistent over the past eight quarters, ranging from 8.97 to 12.19. This indicates that the company has a strong ability to meet its interest obligations with its operating income. With values consistently above 1, Armstrong World Industries Inc. has sufficient operating income to cover its interest expenses, which is a positive sign for creditors and investors. The slight fluctuations in the interest coverage ratio do not raise any immediate concerns about the company's ability to service its debt. Overall, the stable and healthy interest coverage ratios suggest that Armstrong World Industries Inc. is effectively managing its debt obligations.