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Armstrong World Industries (FRA:91A) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Armstrong World Industries Quick Ratio Related Terms
Armstrong World Industries Quick Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:91A vs FBIN, BLDR, AAON: Quick Ratio Comparison
For the Building Products & Equipment subindustry, Armstrong World Industries's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Armstrong World Industries Quick Ratio vs Construction Industry
For the Construction industry and Industrials sector, Armstrong World Industries's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Armstrong World Industries's Quick Ratio falls into.
Armstrong World Industries Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Armstrong World Industries (FRA:91A) has a Quick Ratio of 1.06 as of Jun. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Armstrong World Industries and its competitors. This is 11% below median its historical median of 1.19. Over the past decade, Armstrong World Industries' Quick Ratio has ranged from 0.96 to 2.20. According to the industry distribution chart, Armstrong World Industries ranks #1174 out of 1791 companies in the Construction industry, placing it in the top 65.5%.
Is Armstrong World Industries' Quick Ratio too high?
Armstrong World Industries' current Quick Ratio of 1.06 is 11% below median its 10-year median of 1.19. Over the past 10 years, this metric has ranged from a low of 0.96 to a high of 2.20. The Construction industry median Quick Ratio is 1.29. Armstrong World Industries' value of 1.06 is 17.8% below this industry median. Based on the distribution chart, Armstrong World Industries ranks #1174 out of 1791 companies in the Construction industry, which is below the industry midpoint. Overall, Armstrong World Industries has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does Armstrong World Industries' Quick Ratio compare to FBIN and BLDR?
According to the Construction industry distribution chart, Armstrong World Industries ranks #1174 out of 1791 companies for Quick Ratio. This places Armstrong World Industries in the lower half of its industry. The industry median Quick Ratio is 1.29. Armstrong World Industries' value of 1.06 is 17.8% below this benchmark. Historically, Armstrong World Industries' own Quick Ratio has ranged from 0.96 to 2.20 over the past decade. While the company's 10-year median is 1.19 vs. the industry median of 1.29, Armstrong World Industries has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Quick Ratio for a Construction company?
The median Quick Ratio among Construction companies is 1.29, based on 1,791 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Armstrong World Industries's current Quick Ratio of 1.06 is 17.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Armstrong World Industries and its competitors. For the Construction industry, the median Quick Ratio is 1.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Armstrong World Industries's current Quick Ratio is 1.06, which is 11% below median its own 10-year median of 1.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Armstrong World Industries stock overvalued right now?
Armstrong World Industries (FRA:91A) has a current Quick Ratio of 1.06. The stock's GF Value™ is €148.83, compared to a current price of €159.00 — trading 6.8% above its estimated fair value. The current Quick Ratio is 1.06, which is 11% below median its 10-year median of 1.19 and 17.8% below the Construction industry median of 1.29. Armstrong World Industries' overall GF Score™ is 71/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Armstrong World Industries (FRA:91A), the current Quick Ratio is 1.06 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Armstrong World Industries (FRA:91A) Overvalued in 2026?
Based on GuruFocus' analysis, Armstrong World Industries stock appears to be overvalued.
The current stock price of €159.00 is trading 6.8% above its estimated GF Value™ of €148.83.
Key valuation signals for FRA:91A:
Quick Ratio: 1.06 (11% below median its 10-year median of 1.19)
GF Value™: €148.83 vs. price of €159.00 (6.8% above fair value)
Industry Position: 17.8% below the Construction median (#1174 of 1791)
No single metric tells the full story. See the FRA:91A stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Armstrong World Industries Inc designs and manufactures exterior architectural applications, including ceilings, specialty walls, and exterior metal solutions, using materials such as mineral fiber, fiberglass, metal, felt, architectural resin and glass, wood, wood fiber, and glass-reinforced-gypsum. Its segments include Mineral Fiber, which produces suspended mineral fiber and fiberglass ceiling systems and includes results from the Worthington Armstrong Venture (WAVE) for ceiling suspension system (grid) products; Architectural Specialties, which designs, produces, and sources specialty ceilings, walls, and other architectural applications for commercial settings, with revenues mainly project driven; and Unallocated Corporate. The company operates in the United States and Canada.
71GF Score
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