Armstrong World Industries Inc (AWI)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 11.24 10.93 10.73 10.29 10.95 10.06 8.99 9.89 10.06 10.11 10.70 10.04 11.66 10.63 9.21 10.82 12.20 11.12 10.06 11.13
Payables turnover 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 13.49 13.63 11.36
Working capital turnover 10.53 7.77 6.78 6.41 7.08 8.62 8.52 9.01 9.77 8.97 7.11 5.73 6.54 5.02 6.03 5.97 11.64 6.39 8.53 5.97

The inventory turnover ratio for Armstrong World Industries Inc. has been consistently high, indicating that the company efficiently manages its inventory levels and quickly sells its products. This trend suggests effective inventory management practices.

The receivables turnover ratio has also been increasing over the quarters, showing that the company is collecting its accounts receivable at a faster pace. This could indicate tighter credit policies or more efficient collection efforts by the company.

Unfortunately, no data is available for the payables turnover ratio, which could have provided insights into how quickly the company pays its suppliers.

The working capital turnover ratio has been fluctuating but generally trending upwards, indicating that the company is generating revenue more efficiently in relation to its working capital. This could suggest that Armstrong World Industries Inc. is effectively utilizing its current assets to generate sales and grow the business.

Average number of days

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
Days of inventory on hand (DOH) days 25.19 26.95 27.50 28.56 28.13 29.88 28.72 28.02 24.57 26.34 25.37 26.48 27.13 26.44 25.06 22.42 22.15 22.54 23.12 23.53
Days of sales outstanding (DSO) days 32.47 33.39 34.02 35.47 33.35 36.28 40.58 36.91 36.30 36.11 34.11 36.34 31.31 34.33 39.65 33.74 29.92 32.81 36.27 32.80
Number of days of payables days 28.65 30.07 30.47 29.09 32.58 33.70 34.95 31.50 34.35 33.95 32.15 30.17 32.62 27.40 24.35 24.48 28.91 27.06 26.78 32.12

Days of Inventory on Hand (DOH) measures how many days it takes for a company to sell its inventory. Armstrong World Industries Inc. has shown a decreasing trend in DOH from Q1 2023 to Q4 2023, indicating improved efficiency in managing inventory levels.

Days of Sales Outstanding (DSO) indicates how long it takes for a company to collect its accounts receivables. Armstrong's DSO has fluctuated over the quarters but generally remained stable, with a slight increase in Q4 2023 compared to Q3 2023.

The number of Days of Payables data was not provided, making it challenging to assess Armstrong's payables management efficiency. A longer period of payables may indicate that the company is taking longer to pay its suppliers, potentially freeing up cash for other uses.

Overall, Armstrong World Industries Inc. demonstrates reasonably efficient inventory management and collections, but further information on payables days would provide a more comprehensive view of its working capital management.

Long-term

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
Fixed asset turnover 2.20 2.28 2.25 2.24 2.22 2.22 2.17 2.09 2.02 1.97 1.88 1.75 1.72 1.86 1.91 2.01 1.98 1.94 1.90 1.86
Total asset turnover 0.75 0.74 0.73 0.74 0.73 0.69 0.67 0.66 0.64 0.61 0.58 0.53 0.53 0.59 0.64 0.66 0.70 0.65 0.51 0.49

The fixed asset turnover ratio measures the efficiency of Armstrong World Industries Inc. in generating sales revenue from its investments in fixed assets. From the data provided, we observe a relatively stable trend in the fixed asset turnover ratio over the past eight quarters. The ratio has ranged between 2.11 and 2.30 during this period, indicating that, on average, the company generates sales revenue approximately 2.24 times for every dollar invested in fixed assets.

A consistent fixed asset turnover ratio suggests that Armstrong World Industries is effectively utilizing its fixed assets to drive sales, which is a positive signal for investors and creditors.

On the other hand, the total asset turnover ratio reflects the company's ability to generate sales from its total assets, including both fixed and current assets. The data shows a gradual improvement in the total asset turnover ratio over the past eight quarters, increasing from 0.67 in Q1 2022 to 0.77 in Q4 2023.

This improvement indicates that Armstrong World Industries has become more effective in utilizing its total assets to drive sales revenue. A higher total asset turnover ratio implies that the company is generating more sales for every dollar invested in both fixed and current assets, which can be seen as a positive trend in terms of asset utilization efficiency.

In conclusion, the analysis of Armstrong World Industries Inc.'s long-term activity ratios highlights the company's effective use of both fixed assets and total assets to generate sales revenue over the period under review. This efficiency bodes well for the company's operational performance and potential for future growth.