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Illinois Tool Works Inventory-to-Revenue

: 0.36 (As of Mar. 2020)
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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 Total Inventories for the quarter that ended in Mar. 2020 was $1,175 Mil. Illinois Tool Works's Revenue for the three months ended in Mar. 2020 was $3,228 Mil. Illinois Tool Works's Inventory-to-Revenue for the quarter that ended in Mar. 2020 was 0.36.

Illinois Tool Works's Inventory-to-Revenue for the quarter that ended in Mar. 2020 increased from Dec. 2019 (0.34) to Dec. 2019 (0.36)

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

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 Mar. 2020 was 57.28.

Total Inventories can be measured by Days Sales of Inventory (DSI). Illinois Tool Works's days sales of inventory (DSI) for the three months ended in Mar. 2020 was 33.20.

Inventory Turnover measures how fast the company turns over its inventory within a year. Illinois Tool Works's Inventory Turnover for the quarter that ended in Mar. 2020 was 1.59.

Illinois Tool Works Inventory-to-Revenue Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Illinois Tool Works Annual Data
Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Inventory-to-Revenue Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.09 0.08 0.08 0.09 0.09

Illinois Tool Works Quarterly Data
Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20
Inventory-to-Revenue 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 Premium Member Only Premium Member Only Premium Member Only 0.38 0.36 0.35 0.34 0.36
Competitive Comparison
* 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.

Illinois Tool Works Inventory-to-Revenue Distribution

* The bar in red indicates where Illinois Tool Works's Inventory-to-Revenue falls into.


Illinois Tool Works Inventory-to-Revenue Calculation

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 fiscal year that ended in Dec. 2019 is calculated as

Inventory-to-Revenue (A: Dec. 2019 )
=Total Inventories / Revenue
=( (Total Inventories (A: Dec. 2018 ) + Total Inventories (A: Dec. 2019 )) / count ) / Revenue (A: Dec. 2019 )
=( (1318 + 1164) / 2 ) / 14109
=1241 / 14109
=0.09

Illinois Tool Works's Inventory-to-Revenue for the quarter that ended in Mar. 2020 is calculated as

Inventory-to-Revenue (Q: Mar. 2020 )
=Total Inventories / Revenue
=( (Total Inventories (Q: Dec. 2019 ) + Total Inventories (Q: Mar. 2020 )) / count ) / Revenue (Q: Mar. 2020 )
=( (1164 + 1185) / 2 ) / 3228
=1174.5 / 3228
=0.36

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Illinois Tool Works  (NYSE:ITW) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

More Related Terms:

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 Mar. 2020 is calculated as:

Days Inventory=Total Inventories (Q: Mar. 2020 )/Cost of Goods Sold (Q: Mar. 2020 )*Days in Period
=1174.5/1871*365 / 4
=57.28

2. Total Inventories can be measured by Days Sales of Inventory (DSI).

Illinois Tool Works's Days Sales of Inventory for the three months ended in Mar. 2020 is

Days Sales of Inventory (DSI)=Total Inventories (Q: Mar. 2020 )/Revenue (Q: Mar. 2020 )*Days in Period
=1174.5/3228*365 / 4
=33.20

3. Inventory Turnover measures how fast the company turns over its inventory within a year.

Illinois Tool Works's Inventory Turnover for the quarter that ended in Mar. 2020 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Mar. 2020 ) / Total Inventories (Q: Mar. 2020 )
=1871 / 1174.5
=1.59

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Illinois Tool Works Inventory-to-Revenue Related Terms

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