Illinois Tool Works Inc (ITW)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		5.53	4.65	5.07	6.27	7.11
DOH	days	65.97	78.51	71.96	58.17	51.34

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.53
= 65.97

The days of inventory on hand (DOH) for Illinois Tool Works, Inc. has fluctuated over the past five years. In 2023, the DOH decreased to 66.88 days from 79.51 days in 2022, indicating an improvement in inventory management efficiency. This may suggest that the company managed its inventory levels more effectively in 2023.

Comparing the DOH to previous years, it is higher than the figures reported in 2020 and 2019, indicating that the company held inventory for a longer period in 2023 and 2022. However, the DOH in 2023 is slightly lower compared to 2021, suggesting a slight improvement in managing inventory turnover.

Overall, while there has been some variation in the DOH over the years, the recent decrease in 2023 compared to 2022 is a positive sign of potential improvements in inventory management practices within Illinois Tool Works, Inc. It is essential for the company to continue monitoring and optimizing its inventory levels to achieve operational efficiency and profitability.