Armstrong World Industries Inc (AWI)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,091,100 | 1,556,200 | 1,514,500 | 1,507,000 | 1,451,800 | 1,448,100 | 1,449,400 | 1,427,400 | 1,405,900 | 1,382,900 | 1,353,400 | 1,340,100 | 1,241,800 | 1,195,400 | 1,128,700 | 1,096,500 | 1,068,400 | 1,077,700 | 1,115,300 | 1,128,700 |
| Inventory | US$ in thousands | 109,800 | 116,000 | 106,400 | 104,000 | 107,200 | 109,100 | 113,400 | 110,000 | 115,100 | 108,800 | 103,900 | 90,200 | 89,600 | 83,100 | 81,900 | 81,500 | 77,400 | 74,000 | 68,500 | 68,500 |
| Inventory turnover | 19.04 | 13.42 | 14.23 | 14.49 | 13.54 | 13.27 | 12.78 | 12.98 | 12.21 | 12.71 | 13.03 | 14.86 | 13.86 | 14.39 | 13.78 | 13.45 | 13.80 | 14.56 | 16.28 | 16.48 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,091,100K ÷ $109,800K
= 19.04
Armstrong World Industries Inc's inventory turnover ratio has demonstrated fluctuations over the analyzed period. From December 31, 2019, to December 31, 2024, the inventory turnover moved within a range from 12.21 to 19.04 times. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times during the period the inventory was sold and replaced.
A higher inventory turnover ratio indicates that the company is selling its inventory quickly, which is usually favorable as it can prevent the risk of obsolete inventory and reduce carrying costs. Conversely, a lower inventory turnover ratio may suggest overstocking, slow sales, or potential inefficiencies in inventory management.
During the analyzed period, Armstrong World Industries Inc experienced a gradual increase in inventory turnover from December 31, 2019, to December 31, 2020, followed by fluctuations with various peaks and troughs throughout the subsequent periods. The lowest inventory turnover ratio was observed on June 30, 2022, at 12.21, while the highest ratio was recorded on December 31, 2024, at 19.04.
It is important for the company to analyze the reasons behind the fluctuations in the inventory turnover ratio to ensure optimal inventory management practices. Continuous monitoring and evaluation of this ratio can help Armstrong World Industries Inc make informed decisions regarding inventory levels, purchasing strategies, and overall operational efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024