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Illinois Tool Works (WBO:ITW) Inventory Turnover : 1.21 (As of Sep. 2024)


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What is Illinois Tool Works Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Illinois Tool Works's Cost of Goods Sold for the three months ended in Sep. 2024 was €2,009 Mil. Illinois Tool Works's Average Total Inventories for the quarter that ended in Sep. 2024 was €1,663 Mil. Illinois Tool Works's Inventory Turnover for the quarter that ended in Sep. 2024 was 1.21.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Illinois Tool Works's Days Inventory for the three months ended in Sep. 2024 was 75.55.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Illinois Tool Works's Inventory-to-Revenue for the quarter that ended in Sep. 2024 was 0.47.


Illinois Tool Works Inventory Turnover Historical Data

The historical data trend for Illinois Tool Works's Inventory 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.

* Premium members only.

Illinois Tool Works Inventory Turnover Chart

Illinois Tool Works Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.68 5.99 6.07 5.18 4.88

Illinois Tool Works Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.26 1.30 1.22 1.25 1.21

Illinois Tool Works Inventory Turnover Calculation

Illinois Tool Works's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

Inventory Turnover (A: Dec. 2023 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2023 ) / ((Total Inventories (A: Dec. 2022 ) + Total Inventories (A: Dec. 2023 )) / count )
=8542.772 / ((1938.976 + 1565.319) / 2 )
=8542.772 / 1752.1475
=4.88

Illinois Tool Works's Inventory Turnover for the quarter that ended in Sep. 2024 is calculated as

Inventory Turnover (Q: Sep. 2024 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Sep. 2024 ) / ((Total Inventories (Q: Jun. 2024 ) + Total Inventories (Q: Sep. 2024 )) / count )
=2009.23 / ((1689.851 + 1637.117) / 2 )
=2009.23 / 1663.484
=1.21

* 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  (WBO:ITW) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Illinois Tool Works's Days Inventory for the three months ended in Sep. 2024 is calculated as:

Days Inventory =Average Total Inventories (Q: Sep. 2024 )/Cost of Goods Sold (Q: Sep. 2024 )*Days in Period
=1663.484/2009.23*365 / 4
=75.55

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Illinois Tool Works's Inventory to Revenue for the quarter that ended in Sep. 2024 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=1663.484 / 3573.366
=0.47

* 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.


Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.


Illinois Tool Works Inventory Turnover Related Terms

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Illinois Tool Works Business Description

Address
155 Harlem Avenue, Glenview, IL, USA, 60025
Illinois Tool Works is a diversified global manufacturer that produces specialized industrial equipment, consumables, and related services. The firm operates 84 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. Europe, the Middle East, and Africa is the next largest contributor at about 25% of revenue. 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.