Armstrong World Industries Inc (AWI)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	1,247,800	1,275,800	1,255,300	1,254,300	1,230,300	1,201,100	1,169,200	1,128,400	1,097,100	1,040,000	994,100	917,000	912,800	958,000	983,200	1,048,400	1,038,100	987,800	973,000	949,300
Receivables	US$ in thousands	111,000	116,700	117,000	121,900	112,400	119,400	130,000	114,100	109,100	102,900	92,900	91,300	78,300	90,100	106,800	96,900	85,100	88,800	96,700	85,300
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,247,800K ÷ $111,000K
= 11.24

Armstrong World Industries Inc.'s receivables turnover ratio has shown a consistent upward trend over the past eight quarters, indicating an improvement in the company's efficiency in collecting receivables. The ratio has increased from 9.93 in Q1 2022 to 11.58 in Q4 2023. This indicates that the company is collecting its accounts receivable more frequently within each period, reflecting strong liquidity and effective management of credit sales. Overall, the increasing trend in receivables turnover ratio suggests that Armstrong World Industries Inc. has been successful in promptly converting its credit sales into cash, which is a positive indicator of its financial health and operational efficiency.