Illinois Tool Works Inc (ITW)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 66.14 | 66.88 | 79.51 | 72.84 | 58.85 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 66.14 | 66.88 | 79.51 | 72.84 | 58.85 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 66.14 + — – —
= 66.14
The cash conversion cycle of Illinois Tool Works Inc has shown variability over the years. It stood at 58.85 days as of December 31, 2020, representing the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales. The cycle increased to 72.84 days by December 31, 2021, indicating a longer period for the conversion process.
Subsequently, by December 31, 2022, the cash conversion cycle further extended to 79.51 days before declining to 66.88 days by December 31, 2023. This reduction may suggest an improvement in the efficiency of the company's working capital management during that period.
As of December 31, 2024, the cash conversion cycle remained relatively stable at 66.14 days. Overall, fluctuations in the cash conversion cycle can reflect changes in inventory management, accounts receivable collection, and accounts payable practices within Illinois Tool Works Inc.
Peer comparison
Dec 31, 2024