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.
Peer comparison
Dec 31, 2023