Illinois Tool Works Inc (ITW)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		5.52	5.46	4.59	5.01	6.20
DOH	days	66.14	66.88	79.51	72.84	58.85

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.52
= 66.14

The days of inventory on hand (DOH) for Illinois Tool Works Inc have shown fluctuations over the past five years.

From December 31, 2020, to December 31, 2021, the DOH increased from 58.85 days to 72.84 days, indicating a longer time it took for the company to turn its inventory into sales.

By December 31, 2022, the DOH further increased to 79.51 days, reaching its peak within the period under review. This suggests that Illinois Tool Works Inc might have been experiencing challenges in efficiently managing its inventory levels.

However, by December 31, 2023, there was a decrease in the DOH to 66.88 days, potentially indicating improvements in inventory management efficiency.

The trend continued into December 31, 2024, where the DOH slightly decreased to 66.14 days, suggesting ongoing efforts to optimize inventory turnover.

Overall, analyzing the DOH trend for Illinois Tool Works Inc reveals fluctuations in inventory management efficiency over the past five years, with notable peaks and troughs within the period. Tracking this ratio can help stakeholders evaluate the company's ability to manage inventory levels effectively and improve operational performance.