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.
Peer comparison
Dec 31, 2023