Illinois Tool Works Inc (ITW)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.53 | 4.94 | 4.98 | 5.00 | 5.46 | 5.18 | 4.88 | 4.71 | 4.59 | 4.64 | 4.58 | 4.68 | 5.01 | 5.44 | 5.79 | 5.84 | 6.20 | 6.44 | 6.42 | 6.75 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 10.27 | 9.51 | 11.03 | 10.52 | 10.32 | 6.98 | 6.80 | 14.66 | 8.80 | 8.67 | 7.31 | 5.26 | 4.98 | 3.98 | 3.95 | 3.20 | 3.20 | 3.60 | 3.57 | 3.97 |
The inventory turnover ratio for Illinois Tool Works Inc has been gradually declining from 6.75 in March 2020 to 5.53 in December 2024. This implies that the company is taking longer to sell its inventory over time.
The receivables turnover ratio is not available for analysis as there is no data provided for this metric throughout the period.
Similarly, the payables turnover ratio is not provided, making it impossible to evaluate the efficiency of the company in paying its suppliers.
The working capital turnover ratio shows fluctuation over the years, with a significant increase from 3.97 in March 2020 to 11.03 in June 2024. This suggests an improvement in how efficiently the company is using its working capital to generate sales.
Overall, the inventory turnover and working capital turnover ratios provide insights into Illinois Tool Works Inc's operational efficiency in managing inventory and working capital during the specified period. However, the absence of data for receivables and payables turnover ratios limits a holistic assessment of the company's overall activity efficiency.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 65.95 | 73.90 | 73.26 | 73.04 | 66.88 | 70.51 | 74.87 | 77.55 | 79.51 | 78.68 | 79.78 | 78.04 | 72.84 | 67.04 | 62.99 | 62.52 | 58.85 | 56.70 | 56.84 | 54.07 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data, the trend analysis of Illinois Tool Works Inc's Days of Inventory on Hand (DOH) shows an increasing trend from March 2020 to December 2024. The company's DOH increased from 54.07 days in March 2020 to 65.95 days in December 2024, with fluctuations along the way.
It is important to note that a higher number of days of inventory on hand may indicate slower inventory turnover, potentially tying up working capital and increasing carrying costs. However, without additional information on the industry benchmarks or specific company strategy, it is challenging to draw definitive conclusions about the efficiency of Illinois Tool Works Inc's inventory management solely based on this data.
Unfortunately, there is no data available for the Days of Sales Outstanding (DSO) and Number of Days of Payables for the company. Without this information, it is difficult to provide a comprehensive analysis of Illinois Tool Works Inc's overall liquidity and efficiency related to accounts receivables and payables management.
In conclusion, while the increasing trend in Days of Inventory on Hand warrants further investigation into the company's inventory management practices, the absence of data on DSO and Number of Days of Payables limits a holistic assessment of the company's activity ratios and liquidity performance.
See also:
Illinois Tool Works Inc Short-term (Operating) Activity Ratios (Quarterly Data)
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 8.45 | 8.46 | 8.49 | 8.62 | 9.17 | 8.75 | 8.27 | 7.99 | 8.17 | 7.92 | 7.38 | 7.08 | 7.24 | 7.45 | 8.09 |
| Total asset turnover | 1.06 | 1.01 | 1.03 | 1.03 | 1.04 | 1.05 | 1.03 | 1.01 | 1.03 | 1.03 | 0.97 | 0.91 | 0.90 | 0.92 | 0.90 | 0.82 | 0.81 | 0.84 | 0.89 | 0.97 |
Illinois Tool Works Inc's fixed asset turnover ratio has shown a generally increasing trend over the years, indicating that the company is generating more sales revenue relative to its investment in fixed assets. The ratio has consistently improved from 8.09 in March 2020 to 8.45 in September 2023 before plateauing, and it stands at a high value of 8.49 as of March 31, 2024.
In terms of total asset turnover, Illinois Tool Works Inc's performance has been fluctuating but generally improving. The ratio started at 0.97 in March 2020, declined to 0.81 in December 2020, then began an upward trend, reaching 1.06 by December 31, 2024. This indicates that the company has been more efficient in generating sales revenue relative to its total assets.
Overall, both fixed asset turnover and total asset turnover ratios suggest that Illinois Tool Works Inc has been effectively utilizing its assets to drive sales growth and improve operational efficiency over the years.
See also:
Illinois Tool Works Inc Long-term (Investment) Activity Ratios (Quarterly Data)