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.