Armstrong World Industries Inc (AWI)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,247,800 | 1,230,300 | 1,097,100 | 912,800 | 1,035,400 |
| Receivables | US$ in thousands | 111,000 | 112,400 | 109,100 | 78,300 | 85,100 |
| Receivables turnover | 11.24 | 10.95 | 10.06 | 11.66 | 12.17 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,247,800K ÷ $111,000K
= 11.24
The receivables turnover ratio for Armstrong World Industries Inc. has shown a fluctuating trend over the past five years. The ratio measures how efficiently the company is able to collect on its accounts receivable during a given period.
In 2023, the receivables turnover ratio increased to 11.58, indicating that the company collected its accounts receivable more quickly compared to the previous year. This may suggest improved collection efforts or more stringent credit policies in place.
However, in 2022, the ratio decreased to 10.80 from 10.01 in 2021. This could indicate that the company took longer to collect its accounts receivable compared to the previous year, which may raise concerns about potential liquidity issues or ineffective credit management practices.
Furthermore, in 2020, the ratio was relatively high at 11.62, suggesting strong collection efficiency. This was an improvement from the ratio of 9.02 in 2019, indicating that the company had enhanced its accounts receivable collection process during that period.
Overall, the fluctuating trend in Armstrong World Industries Inc.'s receivables turnover ratio over the past five years highlights the importance of monitoring the company's ability to efficiently manage its accounts receivable, as it can impact cash flow and overall financial performance.
Peer comparison
Dec 31, 2023