Armstrong World Industries Inc (AWI)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,688,300 | 1,514,500 | 1,435,400 | 1,357,700 | 1,107,300 |
| Inventory | US$ in thousands | 109,800 | 104,000 | 110,000 | 90,200 | 81,500 |
| Inventory turnover | 15.38 | 14.56 | 13.05 | 15.05 | 13.59 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,688,300K ÷ $109,800K
= 15.38
Armstrong World Industries Inc's inventory turnover has shown a generally positive trend over the past five years, increasing from 13.59 in 2020 to 15.38 in 2024. This indicates that the company is managing its inventory more efficiently, with a higher turnover rate, which can be a positive indicator of operational effectiveness. The peak in inventory turnover at the end of 2024 suggests that the company has been successful in optimizing its inventory management practices. Overall, the increasing trend in inventory turnover is a favorable sign of the company's ability to sell its inventory quickly and effectively, potentially leading to improved profitability and cash flow.
Peer comparison
Dec 31, 2024