Armstrong World Industries Inc (AWI)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 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 | 11.12 | 10.06 | 11.13 | |
| DSO | days | 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 | 32.81 | 36.27 | 32.80 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 11.24
= 32.47
To analyze Armstrong World Industries Inc.'s days of sales outstanding (DSO) based on the provided data, we observe a fluctuating trend over the past eight quarters. DSO measures the average number of days it takes for the company to collect revenue after a sale is made. A lower DSO indicates faster collections and better liquidity management.
In Q4 2023, Armstrong World Industries Inc. reported a DSO of 31.51 days, which decreased compared to the previous quarter's 33.65 days in Q3 2023. This reduction suggests an improvement in the company's efficiency in collecting accounts receivable.
Looking further back, the DSO has shown varying levels over recent quarters, with fluctuations between a high of 41.45 days in Q2 2022 and a low of 31.51 days in Q4 2023. Generally, a decreasing trend in DSO is favorable as it signifies quicker cash conversion and a healthier liquidity position.
It is essential for Armstrong World Industries Inc. to continue monitoring and managing their DSO to ensure efficient working capital management and cash flow optimization. By implementing strategies to expedite receivables collection, the company can enhance its financial performance and strengthen its overall financial health in the long term.
Peer comparison
Dec 31, 2023