Illinois Tool Works Inc (ITW)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 9,445,000 | 9,549,000 | 8,592,000 | 7,460,000 | 8,276,000 |
| Inventory | US$ in thousands | 1,707,000 | 2,054,000 | 1,694,000 | 1,189,000 | 1,164,000 |
| Inventory turnover | 5.53 | 4.65 | 5.07 | 6.27 | 7.11 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $9,445,000K ÷ $1,707,000K
= 5.53
The inventory turnover ratio of Illinois Tool Works, Inc. has shown fluctuations over the past five years. The ratio was 5.46 in 2023, representing an improvement from the previous year's ratio of 4.59. This indicates that the company converted its inventory into sales more efficiently in 2023 compared to 2022.
However, compared to 2021, where the inventory turnover ratio was 5.01, there was a slight increase in inventory turnover in 2023. The highest inventory turnover ratio was observed in 2019 at 7.03, indicating optimal management of inventory levels and efficient sales generation.
Overall, the trend in inventory turnover for Illinois Tool Works, Inc. has shown some variability over the years, but the company has generally maintained a healthy level of inventory turnover, which is essential for managing working capital effectively and generating revenue efficiently.
Peer comparison
Dec 31, 2023