Illinois Tool Works Inc (ITW)

Days of inventory on hand (DOH)

		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
Inventory turnover		5.53	5.24	4.94	4.77	4.65	4.69	4.63	4.73	5.07	5.44	5.79	5.84	6.20	6.44	6.42	6.75	7.03	6.83	6.65	6.30
DOH	days	65.97	69.61	73.92	76.58	78.51	77.82	78.88	77.14	71.96	67.04	62.99	62.52	58.85	56.70	56.84	54.07	51.89	53.42	54.90	57.92

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 shown a fluctuating trend over the past eight quarters. In Q4 2023, the DOH decreased to 66.88 days, marking a decline from the previous quarter. This reduction may indicate a more efficient management of inventory levels during this period.

Compared to Q1 2022, where the DOH was at 78.04 days, there has been an overall decreasing trend in inventory holding periods. However, it is worth noting that there was a slight increase in DOH in Q3 2023 and Q2 2023 compared to the previous quarters.

The company seems to be making efforts to optimize its inventory management practices. Further monitoring of this ratio will be essential to ascertain whether these improvements are sustainable or if any underlying factors may influence inventory levels in the future.