Armstrong World Industries Inc (AWI)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 11.24 | 10.95 | 10.06 | 11.66 | 12.17 | |
| DSO | days | 32.47 | 33.35 | 36.30 | 31.31 | 30.00 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.24
= 32.47
The days of sales outstanding (DSO) for Armstrong World Industries Inc. have shown fluctuations over the past five years. The DSO decreased from 40.47 days in 2019 to 31.40 days in 2020, indicating an improvement in the company's accounts receivable collection efficiency. However, the DSO then increased to 36.45 days in 2021 and further to 33.80 days in 2022, which may suggest a slowdown in receivables collection.
In 2023, the DSO decreased again to 31.51 days, close to the level seen in 2020. This reduction could indicate improved management of accounts receivable, leading to faster collection of sales revenue. Overall, while the trend in DSO has been somewhat inconsistent, the recent decrease in 2023 is a positive sign for Armstrong World Industries Inc.'s liquidity and efficiency in collecting receivables.
Peer comparison
Dec 31, 2023