Armstrong World Industries Inc (AWI)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,442,900 | 1,247,800 | 1,230,300 | 1,097,100 | 912,800 |
| Receivables | US$ in thousands | 134,400 | 111,000 | 112,400 | 109,100 | 78,300 |
| Receivables turnover | 10.74 | 11.24 | 10.95 | 10.06 | 11.66 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,442,900K ÷ $134,400K
= 10.74
Armstrong World Industries Inc's receivables turnover ratio has fluctuated over the past five years. The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers.
As of December 31, 2020, the receivables turnover ratio was 11.66, indicating that the company collected its outstanding receivables approximately 11.66 times during that year. However, this ratio decreased to 10.06 by December 31, 2021, suggesting a slight decline in the company's ability to efficiently collect payments from customers.
Subsequently, the receivables turnover ratio improved to 10.95 by December 31, 2022, indicating a better performance in collecting receivables. By December 31, 2023, the ratio further increased to 11.24, showing continued improvement in the efficiency of receivables collection.
However, by December 31, 2024, the receivables turnover ratio decreased slightly to 10.74, although it remained above the 10 threshold, signifying that the company is still able to collect its receivables efficiently.
Overall, Armstrong World Industries Inc's receivables turnover ratio has shown some fluctuations over the years, but generally indicates effective management of accounts receivable and efficient collection practices.
Peer comparison
Dec 31, 2024