Armstrong World Industries Inc (AWI)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 15.38 | 14.56 | 13.05 | 15.05 | 13.59 | |
| DOH | days | 23.74 | 25.06 | 27.97 | 24.25 | 26.86 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 15.38
= 23.74
Armstrong World Industries Inc's Days of Inventory on Hand (DOH) have shown a decreasing trend over the five-year period from 2020 to 2024, indicating improved efficiency in managing inventory. The company reduced its DOH from 26.86 days in 2020 to 23.74 days in 2024. This suggests that Armstrong World Industries has been more effective in converting inventory into sales during this period. Lower DOH signifies better inventory management, as the company is holding less inventory relative to its sales. This improvement could result in lower holding costs, reduced risk of obsolescence, and increased liquidity. However, it is essential for the company to strike a balance to ensure it does not face stockouts that could impact its ability to fulfill customer orders in a timely manner. Overall, the decreasing trend in DOH reflects positively on Armstrong World Industries' operational efficiency and management of its inventory levels.
Peer comparison
Dec 31, 2024