The Receivables Turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by average Accounts Receivable. An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. Illinois Tool Works's Revenue for the
three
months ended in Dec. 2023 was $3,983 Mil. Illinois Tool Works's average Accounts Receivable for the
three
months ended in Dec. 2023 was $3,143 Mil.
Hence, Illinois Tool Works's Receivables Turnover for the
three
months ended in Dec. 2023 was 1.27.
Illinois Tool Works Receivables Turnover Historical Data
The historical data trend for Illinois Tool Works's Receivables Turnover can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Illinois Tool Works's Receivables Turnover
For the Specialty Industrial Machinery subindustry, Illinois Tool Works's Receivables Turnover, along with its competitors' market caps and Receivables Turnover data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Illinois Tool Works's Receivables Turnover Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Illinois Tool Works's Receivables Turnover distribution charts can be found below:
* The bar in red indicates where Illinois Tool Works's Receivables Turnover falls into.
Illinois Tool Works Receivables Turnover Calculation
Receivables Turnover measures the number of times a company collects its average accounts receivable balance.
Illinois Tool Works's Receivables Turnover for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Illinois Tool Works (NYSE:ITW) Receivables Turnover Explanation
An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. This metric is commonly used to compare companies within the same industry to check whether they are on par with their competitors.
Illinois Tool Works Receivables Turnover Related Terms
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Illinois Tool Works (Illinois Tool Works) Business Description
Illinois Tool Works is a diversified global manufacturer that produces specialized industrial equipment, consumables, and related services. The firm operates 87 global divisions through seven distinct operating segments: automotive OEM, construction products, food equipment, specialty products, test/measurement and electronics, polymers and fluids, and welding. About half of its revenue comes from its operations in North America, with the remainder originating from international markets. ITW takes a bottom-up and decentralized approach to portfolio management, with the exception that each segment must apply its 80/20 operating process modeled on the Pareto principle.
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