Illinois Tool Works (XTER:ILT) Inventory Turnover : 1.34 (As of Dec. 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 Dec. 2024 was €2,121 Mil. Illinois Tool Works's Average Total Inventories for the quarter that ended in Dec. 2024 was €1,585 Mil. Illinois Tool Works's Inventory Turnover for the quarter that ended in Dec. 2024 was 1.34.

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 Dec. 2024 was 68.19.

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 Dec. 2024 was 0.42.

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.

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Illinois Tool Works Inventory Turnover Chart

Illinois Tool Works Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Inventory Turnover

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5.99

6.07

5.18

4.88

5.46

Illinois Tool Works Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Inventory Turnover	Get a 7-Day Free Trial															1.30	1.22	1.25	1.21	1.34

Illinois Tool Works Inventory Turnover Calculation

Illinois Tool Works's Inventory Turnover for the fiscal year that ended in Dec. 2024 is calculated as

	Inventory Turnover (A: Dec. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2024 )	/ (	(Total Inventories (A: Dec. 2023 )	+	Total Inventories (A: Dec. 2024 ))	/	count )
=	8459.39	/ (	(1565.319	+	1532.775)	/	2 )
=	8459.39	/	1549.047
=	5.46

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

	Inventory Turnover (Q: Dec. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2024 )	/ (	(Total Inventories (Q: Sep. 2024 )	+	Total Inventories (Q: Dec. 2024 ))	/	count )
=	2121.055	/ (	(1637.117	+	1532.775)	/	2 )
=	2121.055	/	1584.946
=	1.34

Illinois Tool Works (XTER:ILT) 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 Dec. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2024 )	/	Cost of Goods Sold (Q: Dec. 2024 )	*	Days in Period
	=	1584.946	/	2121.055	*	365 / 4
	=	68.19

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 Dec. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2024 )	/	Revenue (Q: Dec. 2024 )
	=	1584.946	/	3755.06
	=	0.42

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

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Illinois Tool Works Inc (XTER:ILT) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

ITW:USA 0J8W:UK ILT:Germany ITW:Austria

Address

155 Harlem Avenue, Glenview, IL, USA, 60025

Website

https://www.itw.com

Founded in 1912, Illinois Tool Works has become a diversified industrial manufacturer through acquisitions and innovations that follow customer needs. ITW operates through seven business segments, with no segment representing more than one fifth of revenue. ITW's automotive OEM segment sells vehicle components; its food equipment segment sells commercial kitchen appliances; its test & measurement and electronics segment sells inspection and analysis equipment; its welding segment sells welding equipment and consumables; its polymers & fluids segment sells industrial and consumer adhesives, solvents, and coatings; its construction products segment sells building fasteners and tools; and its specialty products segment sells medical, packaging, HVAC, and airport ground equipment.

Illinois Tool Works Headlines

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