Armstrong Flooring's Days Sales Outstanding for the
three
months ended in Dec. 2021 was 37.16.
Armstrong Flooring's Days Inventory for the
three
months ended in Dec. 2021 was 85.31.
Armstrong Flooring's Days Payable for the
three
months ended in Dec. 2021 was 54.19.
Therefore, Armstrong Flooring's Cash Conversion Cycle (CCC) for the
three
months ended in Dec. 2021 was 68.28.
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Armstrong Flooring Cash Conversion Cycle Related Terms
Armstrong Flooring Cash Conversion Cycle Historical Data
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The historical data trend for Armstrong Flooring's Cash Conversion Cycle can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:2AS vs AEHL, CARR, MAS: Cash Conversion Cycle Comparison
For the Building Products & Equipment subindustry, Armstrong Flooring's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Armstrong Flooring Cash Conversion Cycle vs Construction Industry
For the Construction industry and Industrials sector, Armstrong Flooring's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Armstrong Flooring's Cash Conversion Cycle falls into.
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
Armstrong Flooring's Cash Conversion Cycle for the fiscal year that ended in Dec. 2021 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Armstrong Flooring (STU:2AS) has a Cash Conversion Cycle of 68.28 as of Dec. 2021. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Armstrong Flooring and its competitors.
Is Armstrong Flooring's Cash Conversion Cycle too high?
Armstrong Flooring's current Cash Conversion Cycle is 68.28. The Construction industry median Cash Conversion Cycle is 55.83. Armstrong Flooring's value of 68.28 is 22.3% above this industry median. Overall, Armstrong Flooring has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Armstrong Flooring's Cash Conversion Cycle compare to AEHL and CARR?
Armstrong Flooring's Cash Conversion Cycle of 68.28 can be compared against companies in the Construction industry. The industry median Cash Conversion Cycle is 55.83. Armstrong Flooring's value of 68.28 is 22.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Construction company?
The median Cash Conversion Cycle among Construction companies is 55.83, based on 1,761 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Armstrong Flooring's current Cash Conversion Cycle of 68.28 is 22.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Armstrong Flooring and its competitors. For the Construction industry, the median Cash Conversion Cycle is 55.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Armstrong Flooring's current Cash Conversion Cycle is 68.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Armstrong Flooring stock overvalued right now?
Armstrong Flooring (STU:2AS) has a current Cash Conversion Cycle of 68.28. The current Cash Conversion Cycle is 68.28 and 22.3% above the Construction industry median of 55.83. Armstrong Flooring's overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Armstrong Flooring (STU:2AS), the current Cash Conversion Cycle is 68.28 as of Dec. 2021. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Armstrong Flooring Inc designs, manufactures, sources, and sells resilient and wood flooring products, which are primarily used for construction and renovation of residential, commercial, and institutional buildings. It operates through two segments namely Resilient Flooring and Wood Flooring. The Resilient Flooring provides a range of floor coverings for homes and commercial buildings under the Armstrong brand and the Wood Flooring segment provides hardwood flooring products under the Armstrong and Bruce brand names. Geographically, the group operates its business in the United States and also has its presence internationally, of which a majority of the revenue is derived from the United States.
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