Illinois Tool Works Inc (ITW)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 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
Inventory turnover		5.53	4.94	4.98	5.00	5.46	5.18	4.88	4.71	4.59	4.64	4.58	4.68	5.01	5.44	5.79	5.84	6.20	6.44	6.42	6.75
DOH	days	65.95	73.90	73.26	73.04	66.88	70.51	74.87	77.55	79.51	78.68	79.78	78.04	72.84	67.04	62.99	62.52	58.85	56.70	56.84	54.07

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.53
= 65.95

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

From March 31, 2020, to December 31, 2021, the DOH increased steadily from 54.07 days to 72.84 days, indicating that the company was holding inventory for a longer period before selling it. This may suggest inefficiencies in inventory management or slower inventory turnover during this period.

However, from March 31, 2022, to June 30, 2024, the DOH fluctuated around the range of 73-80 days, showing some stability in inventory management practices.

In the last data point available, the DOH decreased to 65.95 days on December 31, 2024. This reduction may indicate improvements in inventory turnover efficiency or strategic adjustments in managing inventory levels.

Overall, it is important for Illinois Tool Works Inc to monitor its DOH closely and strive to strike a balance between having enough inventory to meet demand without tying up excess capital in holding inventory for prolonged periods.