Illinois Tool Works Inc (ITW)

Number of days of payables

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Payables turnover 16.26 16.08 14.69 13.97 17.53
Number of days of payables days 22.45 22.70 24.85 26.13 20.82

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 16.26
= 22.45

Illinois Tool Works, Inc.'s number of days of payables has shown a decreasing trend over the past five years, indicating a more efficient management of its accounts payable. The company took approximately 22.76 days to pay its suppliers in 2023, compared to 22.99 days in 2022, 25.15 days in 2021, 26.43 days in 2020, and 21.04 days in 2019. This suggests that Illinois Tool Works, Inc. has been able to negotiate better payment terms with its suppliers or has improved its working capital management.

A lower number of days of payables means that the company is paying its suppliers more quickly, which could be beneficial for maintaining good relationships with its suppliers. However, it could also indicate a potential liquidity risk if the company is struggling to meet its payment obligations within the set timeframe. Overall, the decreasing trend in the number of days of payables for Illinois Tool Works, Inc. reflects positively on its financial efficiency and management practices.


Peer comparison

Dec 31, 2023

Company name
Symbol
Number of days of payables
Illinois Tool Works Inc
ITW
22.45
Gates Industrial Corporation plc
GTES
75.55
Ingersoll Rand Inc
IR
73.22
Zebra Technologies Corporation
ZBRA
45.53

See also:

Illinois Tool Works Inc Average Payables Payment Period