Armstrong World Industries Inc (AWI)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 10.12 | 10.23 | 10.08 | 11.24 | 10.93 | 10.73 | 10.29 | 10.95 | 10.06 | 8.99 | 9.89 | 10.06 | 10.11 | 10.70 | 10.04 | 11.66 | 10.63 | 9.21 | 10.82 | 12.20 | |
| DSO | days | 36.06 | 35.69 | 36.22 | 32.47 | 33.39 | 34.02 | 35.47 | 33.35 | 36.28 | 40.58 | 36.91 | 36.30 | 36.11 | 34.11 | 36.34 | 31.31 | 34.33 | 39.65 | 33.74 | 29.92 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.12
= 36.06
The Days Sales Outstanding (DSO) is a measure of how long it takes a company to collect payment after making a sale. Looking at the data provided for Armstrong World Industries Inc, we observe fluctuations in the DSO over the quarters.
From December 31, 2019, to June 30, 2020, there was a noticeable increase in DSO, indicating a possible delay in collecting receivables. However, by December 31, 2020, the DSO had decreased, suggesting an improvement in collections efficiency.
In the following quarters, up to June 30, 2021, DSO remained relatively stable before showing a slight increase, which could be a cause for concern as it may indicate potential difficulties in receiving payments promptly.
From September 30, 2021, to March 31, 2022, there was a significant spike in DSO, which could signal increased credit risk or slower collection efforts. Despite a slight decrease by June 30, 2022, the DSO remained above historical levels, indicating ongoing challenges in receivables management.
By March 31, 2024, the DSO had increased again, suggesting persistent issues with collecting payments efficiently. However, from September 30, 2024, to December 31, 2024, there was a slight improvement in DSO, indicating efforts to address the collection process.
Overall, Armstrong World Industries Inc should closely monitor its DSO and implement strategies to shorten the collection period, improve cash flow, and mitigate credit risks.
Peer comparison
Dec 31, 2024