Illinois Tool Works Inc (ITW)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,858,000 | 9,316,000 | 9,429,000 | 8,489,000 | 7,375,000 |
| Inventory | US$ in thousands | 1,605,000 | 1,707,000 | 2,054,000 | 1,694,000 | 1,189,000 |
| Inventory turnover | 5.52 | 5.46 | 4.59 | 5.01 | 6.20 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $8,858,000K ÷ $1,605,000K
= 5.52
Illinois Tool Works Inc's inventory turnover has shown a decreasing trend from 6.20 in December 31, 2020, to 5.01 in December 31, 2021, and further declining to 4.59 in December 31, 2022. However, there was a notable improvement in inventory turnover to 5.46 in December 31, 2023, followed by a slight increase to 5.52 in December 31, 2024.
The decreasing trend in inventory turnover from 2020 to 2022 may indicate potential inefficiencies in managing and selling inventory. The subsequent increase in inventory turnover in 2023 and 2024 reflects a more efficient management of inventory, indicating that the company was able to sell its inventory more frequently during these periods.
Overall, Illinois Tool Works Inc's inventory turnover has fluctuated over the years, but the recent improvements suggest a positive trend towards better inventory management efficiency. However, further analysis of the company's operations and industry benchmarks would be necessary to provide a more comprehensive assessment of its inventory turnover performance.
Peer comparison
Dec 31, 2024