Armstrong World Industries Inc (AWI)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	1,360,400	1,338,600	1,263,600	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
Total current assets	US$ in thousands	348,900	357,700	330,700	313,000	350,100	362,000	362,000	356,500	351,800	344,400	318,100	321,900	310,300	317,500	316,300	311,800	323,300	320,000	345,400	244,400
Total current liabilities	US$ in thousands	249,700	218,400	184,400	194,500	185,800	176,800	166,300	182,700	212,400	207,200	192,800	209,600	194,300	177,600	156,200	172,300	132,300	156,900	169,800	155,200
Working capital turnover		13.71	9.61	8.64	10.53	7.77	6.78	6.41	7.08	8.62	8.52	9.01	9.77	8.97	7.11	5.73	6.54	5.02	6.03	5.97	11.64

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,360,400K ÷ ($348,900K – $249,700K)
= 13.71

Armstrong World Industries Inc's working capital turnover ratio has shown fluctuations over the period from December 31, 2019, to December 31, 2024. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

Initially, the working capital turnover ratio was relatively high at 11.64 as of December 31, 2019, suggesting that the company was effectively using its working capital to generate sales. However, this ratio decreased to 5.97 by March 31, 2020, and continued to fluctuate throughout the subsequent quarters, with values ranging between 5.02 and 9.77.

The working capital turnover ratio peaked at 13.71 as of December 31, 2024, indicating a significant improvement in the efficiency of working capital utilization to generate revenue. Overall, the trend of the working capital turnover ratio for Armstrong World Industries Inc has shown variations, with some periods demonstrating better efficiency in working capital management than others. It is essential for the company to continue monitoring and optimizing its working capital utilization to enhance operational efficiency and financial performance.