Armstrong World Industries Inc (AWI)
Total asset 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 |
| Total assets | US$ in thousands | 1,842,700 | 1,672,400 | 1,687,200 | 1,710,000 | 1,718,500 |
| Total asset turnover | 0.78 | 0.75 | 0.73 | 0.64 | 0.53 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,442,900K ÷ $1,842,700K
= 0.78
Armstrong World Industries Inc's total asset turnover has shown a positive trend over the past five years. The company's total asset turnover ratio has increased steadily from 0.53 in December 31, 2020, to 0.78 in December 31, 2024. This indicates that the company is generating more revenue for each dollar of assets deployed.
A total asset turnover ratio of 0.78 in December 31, 2024, suggests that Armstrong World Industries Inc is efficiently utilizing its assets to generate sales. The increase in the total asset turnover ratio reflects an improvement in the company's operational efficiency and effectiveness in utilizing its assets to drive revenue growth.
Overall, Armstrong World Industries Inc's increasing total asset turnover ratio is a positive indicator of the company's operational performance and efficiency in generating sales relative to its total assets. Management should continue to focus on driving productivity and optimizing asset utilization to sustain and further improve the total asset turnover ratio in the future.
Peer comparison
Dec 31, 2024