Armstrong World Industries Inc (AWI)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	1,247,800	1,275,800	1,255,300	1,254,300	1,230,300	1,201,100	1,169,200	1,128,400	1,097,100	1,040,000	994,100	917,000	912,800	958,000	983,200	1,048,400	1,038,100	987,800	973,000	949,300
Property, plant and equipment	US$ in thousands	566,400	559,100	559,000	560,400	554,400	541,200	539,500	539,200	542,800	527,300	527,600	523,600	529,900	514,800	514,900	521,300	524,600	508,800	511,900	510,500
Fixed asset turnover		2.20	2.28	2.25	2.24	2.22	2.22	2.17	2.09	2.02	1.97	1.88	1.75	1.72	1.86	1.91	2.01	1.98	1.94	1.90	1.86

December 31, 2023 calculation

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

Armstrong World Industries Inc.'s fixed asset turnover has been relatively stable over the past eight quarters, ranging from 2.11 to 2.30. The fixed asset turnover ratio measures the efficiency of the company in generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is able to generate more revenue per dollar invested in fixed assets.

The average fixed asset turnover ratio for Armstrong World Industries Inc. over the eight quarters is approximately 2.23. This suggests that, on average, the company generates $2.23 in sales revenue for every dollar invested in fixed assets.

The consistent and relatively high fixed asset turnover ratios indicate that Armstrong World Industries Inc. is efficient in utilizing its fixed assets to generate sales. However, it is essential to consider other factors and ratios in conjunction with fixed asset turnover to gain a comprehensive understanding of the company's overall financial performance and efficiency.