Armstrong World Industries Inc (AWI)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,247,800	1,230,300	1,097,100	912,800	1,035,400
Property, plant and equipment	US$ in thousands	566,400	554,400	542,800	529,900	524,600
Fixed asset turnover		2.20	2.22	2.02	1.72	1.97

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,247,800K ÷ $566,400K
= 2.20

Armstrong World Industries Inc.'s fixed asset turnover has shown a generally increasing trend over the past five years. The ratio rose from 1.98 in 2019 to 2.29 in 2023, indicating that the company is generating more revenue per dollar invested in fixed assets. This improvement suggests that Armstrong has become more efficient in utilizing its fixed assets to generate sales.

The increase in fixed asset turnover could be attributed to various factors such as improved asset utilization, effective asset management, or increased sales volume. A higher fixed asset turnover ratio is generally favorable as it indicates that the company is effectively leveraging its fixed assets to generate revenue and is operating more efficiently.

Overall, the upward trend in Armstrong World Industries Inc.'s fixed asset turnover reflects positively on the company's operational efficiency and effectiveness in managing its fixed assets to drive revenue growth.