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 Average Total Inventories for the quarter that ended in Mar. 2025 was $1,634 Mil. Illinois Tool Works's Revenue for the
three
months ended in Mar. 2025 was $3,839 Mil.
Illinois Tool Works's Inventory-to-Revenue for the quarter that ended in Mar. 2025 was 0.43.
Illinois Tool Works's Inventory-to-Revenue for the quarter that ended in Mar. 2025
declined
from Dec. 2024 (0.44) to Dec. 2024 (0.43)
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.
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. 2025 was 69.00.
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. 2025 was 1.32.
Illinois Tool Works Inventory-to-Revenue Historical Data
The historical data trend for Illinois Tool Works's Inventory-to-Revenue 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 Inventory-to-Revenue
For the Specialty Industrial Machinery subindustry, Illinois Tool Works's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue 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 Inventory-to-Revenue Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Illinois Tool Works's Inventory-to-Revenue distribution charts can be found below:
* 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. 2024 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) 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. 2025 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 Inventory-to-Revenue Related Terms
Thank you for viewing the detailed overview of Illinois Tool Works's Inventory-to-Revenue provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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