Armstrong World Industries Inc (AWI)
Working capital 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 |
| Total current assets | US$ in thousands | 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 | 296,700 | 695,600 | 749,000 |
| Total current liabilities | US$ in thousands | 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 | 142,200 | 581,500 | 589,900 |
| Working capital turnover | 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 | 6.39 | 8.53 | 5.97 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,247,800K ÷ ($313,000K – $194,500K)
= 10.53
Armstrong World Industries Inc.'s working capital turnover has exhibited fluctuations over the past eight quarters. The working capital turnover ratio measures the efficiency of a company in utilizing its working capital to generate sales revenue. A higher ratio indicates efficient utilization of working capital.
In Q4 2023, the working capital turnover ratio increased significantly to 10.93, indicating that Armstrong World Industries Inc. was able to generate revenue approximately 10.93 times the amount of its working capital during the quarter. This may suggest improved operational efficiency and effective management of working capital.
The ratio then decreased in Q3 2023 to 7.84 but remained relatively high compared to previous quarters. This could imply a slight decrease in efficiency in converting working capital into sales revenue.
Subsequently, in Q2 2023 and Q1 2023, the working capital turnover ratios were 6.83 and 6.44, respectively, showing a downward trend in efficiency compared to the previous two quarters.
Comparing these figures to the ratios in the same quarters of the previous year, there has been some variability. For example, Q4 2023 showed an improvement over Q4 2022 (7.09). Overall, the trend indicates fluctuations in the company's ability to efficiently utilize its working capital to generate sales, which may warrant further investigation into the underlying factors affecting the company's operations and liquidity management.
Peer comparison
Dec 31, 2023