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Armstrong World Industries Inc key statistics and ratios

In fiscal 2025, Armstrong World Industries Inc had return on equity of 37.2%, an operating margin of 26.6%, debt equal to 45.6% of equity and a current ratio of 1.46. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Fiscal year2009Dec 20092010Dec 20102011Dec 20112012Dec 20122013Dec 20132014Dec 20142015Dec 20152016Dec 20162017Dec 20172018Dec 20182019Dec 20192020Dec 20202021Dec 20212022Dec 20222023Dec 20232024Dec 20242025Dec 2025LTMSept 2026
Gross margin22.3%22.3%23.8%24.5%23.5%29.6%38.0%36.7%35.3%34.2%38.1%35.6%36.7%36.4%38.4%40.2%40.6%39.8%
Operating margin3.3%3.3%8.8%11.7%10.5%15.3%19.5%23.4%27.3%25.6%30.6%27.2%23.5%22.6%25.0%25.9%26.6%25.8%
Net margin2.8%0.4%4.1%5.4%3.7%4.9%11.7%12.5%13.4%19.1%20.7%−10.6%16.6%16.5%17.3%18.3%19.0%18.4%
Free-cash-flow margin5.6%3.8%1.8%0.9%0.0%−1.1%4.1%−6.6%9.0%13.5%10.7%17.4%9.7%8.7%11.6%12.7%15.2%12.5%
Return on equity4.1%0.7%10.1%14.2%13.5%9.6%13.3%20.2%36.8%60.9%72.6%−24.3%37.7%38.5%39.7%39.3%37.2%35.8%
Return on assets—0.4%3.8%4.5%3.4%2.4%3.6%4.7%6.6%10.0%12.9%−6.2%10.7%11.9%13.3%15.1%16.4%16.3%
Asset turnover—0.900.920.830.910.490.300.380.490.530.620.580.650.730.770.820.860.89
Current ratio—2.673.132.652.152.092.021.812.401.311.571.811.541.951.611.401.461.45
Debt to equity0.0%80.2%74.8%148.9%158.4%160.6%129.2%331.5%223.4%365.3%168.5%159.4%121.9%122.4%99.7%69.7%45.6%52.5%
Interest cover (operating income ÷ interest)5.1x4.1x4.9x5.3x3.9x4.3x3.5x4.0x6.9x6.4x8.3x10.6x11.4x10.3x9.2x9.4x13.1x14.9x
Effective tax rate−3.3%79.3%41.8%32.4%35.9%46.7%38.8%34.1%0.7%21.9%19.1%—23.7%22.4%25.0%23.7%22.9%24.4%
R&D as % of revenue—1.3%1.1%1.1%1.2%1.5%2.3%2.1%1.9%1.7%1.4%1.6%1.3%1.2%1.1%1.1%1.0%—
SG&A as % of revenue19.9%19.0%16.7%15.0%15.3%19.3%22.5%22.0%15.5%16.3%16.8%17.4%21.5%19.2%20.3%21.3%20.9%20.7%
Capital spending as % of revenue3.8%3.5%5.5%8.2%8.5%17.2%21.2%12.4%10.0%7.4%6.9%5.9%7.2%6.1%6.5%5.7%6.7%6.5%
Free cash flow ÷ net income199.6%900.9%43.7%16.1%0.0%−22.1%35.0%−52.4%67.5%70.6%51.9%—58.6%53.0%66.9%69.5%79.7%67.9%
Dividends ÷ net income1.7%>999%0.3%386.2%1.5%2.0%1.3%——4.6%16.6%—22.6%21.8%21.0%19.1%17.9%18.4%
Dividends and buybacks ÷ free cash flow0.8%805.9%0.6%>999%——3.6%—99.6%240.1%149.8%51.2%113.0%194.4%119.5%58.1%74.8%147.6%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

4 of 6 checks passed · September 30, 2026
What it owns · $2.0bn
Short-term assets $427mLonger-term assets $1.6bn
What it owes, and who funded it · $1.2bn
Short-term liabilities $294mShareholders' equity $894m
  • Short-term assets cover short-term liabilities $427m of assets due within a year against $294m of liabilities due within a year.
  • Short-term assets cover long-term liabilities Not assessable from the reported split. Not assessable.
  • More cash than debt $71m of cash against $470m of debt.
  • Debt below 40% of shareholders' equity Debt is 53% of equity.
  • Debt burden no higher than five years ago Debt to equity moved from 114% to 53% over five years.
  • A year's operating cash flow covers at least 20% of debt $332m of operating cash flow against $470m of debt.
  • Operating profit covers interest at least five times over Operating income of $451m against $30m of interest.

From Armstrong World Industries Inc's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

76 /100

Strong moat

How hard Armstrong World Industries's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

  • Returns on capital 15 / 20

    Cash operating profit has been a median 11.9% of total assets over 10 years.

  • Pricing power 12 / 20

    Gross margin has been a median 37.9%, moving by 3.7 percentage points (standard deviation) across 10 years.

  • Durability 18 / 20

    Operating margin has been a median 25.8%; its worst year was 21.8%.

  • Cash conversion 16 / 20

    Free cash flow was positive in 10 of 10 years, at a median 12.1% of revenue.

  • Discipline 20 / 20

    The diluted share count fell 10.4% over five years; stock-based pay has been a median 1.2% of revenue.

AI disruption exposure: Medium. In this industry, AI could change how the product is made or sold, without replacing the core asset. The score above includes a 5-point deduction for that exposure (81 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Compare with peers

Head to head: AWI vs ZWSAWI vs NXAWI vs HLMNAAON vs AWI

More: Building Products stocks compared, Industrials sector, rankings of US companies

Figures from Armstrong World Industries Inc's SEC filings (10-K and 10-Q), retrieved October 29, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Armstrong World Industries Inc.