Armstrong World Industries Inc (AWI)

Working capital 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
Total current assets US$ in thousands 313,000 356,500 321,900 311,800 244,400
Total current liabilities US$ in thousands 194,500 182,700 209,600 172,300 155,200
Working capital turnover 10.53 7.08 9.77 6.54 11.61

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,247,800K ÷ ($313,000K – $194,500K)
= 10.53

Armstrong World Industries Inc.'s working capital turnover has demonstrated variability over the past five years. The working capital turnover ratio measures a company's efficiency in managing its working capital to generate sales. A higher ratio indicates better efficiency in utilizing its working capital.

The working capital turnover ratio for Armstrong World Industries Inc. has been fluctuating, with the highest ratio of 11.64 observed in 2019 and the lowest of 6.72 in 2020. The ratio improved in 2021 to 9.85 but then dropped in 2022 to 7.09 before rebounding to 10.93 in 2023.

Overall, Armstrong World Industries Inc. has shown some inconsistency in effectively utilizing its working capital to generate sales revenue over the past five years. It is essential for the company to maintain a balance between efficient working capital management and sustaining revenue growth to ensure long-term financial stability and profitability.


Peer comparison

Dec 31, 2023

Company name
Symbol
Working capital turnover
Armstrong World Industries Inc
AWI
10.53
AptarGroup Inc
ATR
11.70
Berry Global Group Inc
BERY
6.96
Myers Industries Inc
MYE
8.88
Newell Brands Inc
NWL
17.12