Armstrong World Industries Inc (AWI)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 10.74 | 11.24 | 10.95 | 10.06 | 11.66 | |
| DSO | days | 34.00 | 32.47 | 33.35 | 36.30 | 31.31 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.74
= 34.00
To analyze Armstrong World Industries Inc's Days Sales Outstanding (DSO) over the years:
1. The days of sales outstanding (DSO) is a measure of how long it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is collecting its receivables more quickly, which is generally a positive sign.
2. In December 31, 2020, Armstrong World Industries Inc had a DSO of 31.31 days, which suggests that on average it took the company approximately 31.31 days to collect its accounts receivable.
3. Over the following years, we observed fluctuations in the DSO: in December 31, 2021, the DSO increased to 36.30 days, indicating a slower collection of receivables.
4. However, the DSO improved in December 31, 2022, dropping to 33.35 days, showing a more efficient collection process compared to the previous year.
5. In December 31, 2023, the DSO decreased further to 32.47 days, which could be interpreted positively as the company potentially improved its accounts receivable collection practices.
6. Finally, by December 31, 2024, the DSO slightly increased to 34.00 days, still lower than the level in 2021, but higher than the levels seen in 2022 and 2023.
7. Overall, based on the trend observed, Armstrong World Industries Inc has shown fluctuations in its DSO over the years. It is essential for the company to monitor and manage its accounts receivable efficiently to ensure a healthy cash flow and overall financial performance.
Peer comparison
Dec 31, 2024