Illinois Tool Works Inc (ITW)

Receivables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	15,804,000	15,837,000	15,832,000	15,791,000	15,722,000	15,435,000	14,983,000	14,643,000	14,244,000	14,098,000	13,846,000	12,735,000	12,420,000	12,414,000	12,586,000	13,627,000	13,939,000	14,050,000	14,236,000	14,513,000
Receivables	US$ in thousands	3,123,000	3,163,000	3,216,000	3,201,000	3,171,000	3,031,000	3,109,000	3,126,000	2,840,000	2,729,000	2,786,000	2,662,000	2,506,000	2,494,000	2,156,000	2,424,000	2,461,000	2,499,000	2,629,000	2,715,000
Receivables turnover		5.06	5.01	4.92	4.93	4.96	5.09	4.82	4.68	5.02	5.17	4.97	4.78	4.96	4.98	5.84	5.62	5.66	5.62	5.41	5.35

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $15,804,000K ÷ $3,123,000K
= 5.06

The receivables turnover ratio of Illinois Tool Works, Inc. shows consistency over the past eight quarters, ranging from 4.75 to 5.16. This indicates that the company is efficient in collecting payments from its customers. A higher receivables turnover ratio reflects that the company is able to promptly convert its accounts receivable into cash, which is a positive sign of liquidity and effective credit policies. The recent ratio of 4.95 in Q4 2023 suggests a stable performance in managing its receivables compared to the previous quarters. Overall, Illinois Tool Works, Inc. maintains a healthy level of efficiency in collecting its receivables.