Armstrong World Industries Inc (AWI)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 14.49 | 13.54 | 13.27 | 12.78 | 12.98 | 12.21 | 12.71 | 13.03 | 14.86 | 13.86 | 14.39 | 13.78 | 13.45 | 13.80 | 14.56 | 16.28 | 16.48 | 16.19 | 15.78 | 15.51 | |
| DOH | days | 25.19 | 26.95 | 27.50 | 28.56 | 28.13 | 29.88 | 28.72 | 28.02 | 24.57 | 26.34 | 25.37 | 26.48 | 27.13 | 26.44 | 25.06 | 22.42 | 22.15 | 22.54 | 23.12 | 23.53 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 14.49
= 25.19
The days of inventory on hand (DOH) for Armstrong World Industries Inc. have shown a declining trend over the past eight quarters, indicating an improvement in inventory management efficiency. In Q4 2023, the DOH was 47.56 days, down from 49.01 days in Q3 2023 and significantly lower compared to Q1 2023 when it was 51.63 days. This suggests that the company has been able to reduce the amount of time it takes to sell its inventory.
Furthermore, when comparing the latest DOH figure to the same quarter in the previous year (Q4 2022), a noticeable decrease is observed from 51.21 days to 47.56 days, indicating a year-over-year improvement in managing its inventory levels. This reduction in DOH can potentially lead to lower carrying costs, reduced risk of inventory obsolescence, and improved cash flow for the company.
Overall, the decreasing trend in DOH for Armstrong World Industries Inc. reflects positively on the company's inventory management strategies and operational efficiency. However, it is essential for the company to continue monitoring and optimizing its inventory levels to maintain a healthy balance between meeting customer demand and controlling costs.
Peer comparison
Dec 31, 2023