Illinois Tool Works Inc (ITW)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		5.06	4.96	5.02	4.93	5.64
DSO	days	72.13	73.61	72.77	74.00	64.68

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.06
= 72.13

The days of sales outstanding (DSO) for Illinois Tool Works, Inc. have shown some fluctuations over the past five years. In 2019, the DSO was relatively low at 67.55 days, indicating the company was efficient in collecting its accounts receivable. However, the DSO increased in the following years, reaching a peak of 76.08 days in 2020.

Subsequently, there was a slight improvement in 2021 with the DSO decreasing to 74.29 days, but it went back up to 74.98 days in 2022. In the most recent year, 2023, the DSO decreased further to 73.67 days, showing a positive trend in the company's accounts receivable management.

Overall, Illinois Tool Works, Inc. has demonstrated some variability in its days of sales outstanding metric in recent years, with efforts to improve its collection efficiency seen in the most recent period. Monitoring and managing the DSO is important for the company to ensure timely collection of receivables and maintain healthy cash flows.