Armstrong World Industries Inc (AWI)
Payables 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 |
| Payables | US$ in thousands | 164,200 | 143,000 | 114,100 | 118,300 | 119,600 | 120,900 | 115,500 | 127,400 | 129,800 | 132,400 | 116,800 | 126,100 | 115,500 | 105,300 | 93,300 | 98,000 | 80,200 | 71,900 | 74,800 | 89,400 |
| Payables turnover | 12.74 | 10.88 | 13.27 | 12.74 | 12.14 | 11.98 | 12.55 | 11.20 | 10.83 | 10.44 | 11.59 | 10.63 | 10.75 | 11.35 | 12.10 | 11.19 | 13.32 | 14.99 | 14.91 | 12.63 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,091,100K ÷ $164,200K
= 12.74
Armstrong World Industries Inc's payables turnover has fluctuated over the analyzed period. The payables turnover ratio ranged from a high of 14.99 in June 2020 to a low of 10.44 in June 2022. Generally, a higher payables turnover ratio indicates that the company is efficiently managing its accounts payable by paying off its suppliers more frequently within a given period. Conversely, a lower ratio may suggest a slower payment cycle or potential liquidity issues.
The decrease in payables turnover from June 2020 to June 2022 indicates a lengthening of the payment cycle or a decrease in the frequency of payments to suppliers. However, the ratio improved in September 2024, reaching 12.74, which might signify a more efficient management of payables. It is essential for the company to closely monitor its payables turnover ratio to ensure optimal working capital management and maintain healthy relationships with its suppliers.
Peer comparison
Dec 31, 2024