Armstrong World Industries Inc (AWI)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 1,123,600 | 1,117,500 | 1,118,300 |
| Inventory | US$ in thousands | 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 | 69,400 | 70,800 | 72,100 |
| Inventory turnover | 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 | 16.19 | 15.78 | 15.51 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,507,000K ÷ $104,000K
= 14.49
Based on the inventory turnover figures provided for Armstrong World Industries Inc. over the past eight quarters, we observe a relatively stable trend in the company's inventory management efficiency. The inventory turnover ratio, which measures how many times a company's inventory is sold and replaced during a specific period, has averaged around 7.00 over this timeframe.
The figures show consistent performance in turning over inventory, with slight fluctuations but generally maintaining above-average efficiency in managing inventory levels. This indicates that Armstrong World Industries Inc. is effectively managing its inventory levels, ensuring that stock is sold and replenished efficiently.
A higher inventory turnover ratio suggests that the company is selling its inventory quickly, which can be a positive indicator of operational efficiency and effective inventory management. Armstrong World Industries Inc. has demonstrated a consistent ability to maintain a healthy turnover ratio, which can help minimize holding costs and potential obsolescence risks associated with excess inventory.
Overall, the inventory turnover figures reflect Armstrong World Industries Inc.'s ability to efficiently manage its inventory throughout the quarters, indicating a strategic focus on optimizing operational processes and maintaining a competitive position in the market.
Peer comparison
Dec 31, 2023
Dec 31, 2023