Armstrong World Industries Inc (AWI)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,514,500 | 1,435,400 | 1,357,700 | 1,107,300 | 1,139,500 |
| Payables | US$ in thousands | 118,300 | 127,400 | 126,100 | 98,000 | 89,400 |
| Payables turnover | 12.80 | 11.27 | 10.77 | 11.30 | 12.75 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,514,500K ÷ $118,300K
= 12.80
To calculate Armstrong World Industries Inc.'s payables turnover, we need the following formula:
Payables Turnover = Cost of Goods Sold / Average Accounts Payable
Given that the values for Cost of Goods Sold and Accounts Payable are not provided in the table, we are unable to compute the payables turnover for Armstrong World Industries Inc. over the years 2019 to 2023.
The payables turnover ratio is a key indicator of how efficiently a company manages its payables by comparing its purchases on credit to its average accounts payable balance. A higher payables turnover ratio typically indicates that the company is paying its suppliers more quickly, which may be beneficial for maintaining good relationships with suppliers. Conversely, a lower payables turnover ratio may suggest that the company is taking longer to pay its suppliers, potentially straining supplier relationships or indicating inefficiencies in managing payables.
Without the specific numbers for Cost of Goods Sold and Average Accounts Payable, we cannot provide a detailed analysis of Armstrong World Industries Inc.'s payables turnover. It would be valuable to obtain this information to assess the company's payables management efficiency in the given years.
Peer comparison
Dec 31, 2023