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.