Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Illinois Tool Works Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Illinois Tool Works Inc. inventory turnover ratio deteriorated from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Illinois Tool Works Inc. receivables turnover ratio improved from Q2 2021 to Q3 2021 but then slightly deteriorated from Q3 2021 to Q4 2021 not reaching Q2 2021 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Illinois Tool Works Inc. payables turnover ratio increased from Q2 2021 to Q3 2021 but then slightly decreased from Q3 2021 to Q4 2021. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Illinois Tool Works Inc. working capital turnover ratio improved from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Illinois Tool Works Inc. number of days of inventory outstanding deteriorated from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Illinois Tool Works Inc. number of days of receivables outstanding improved from Q2 2021 to Q3 2021 but then slightly deteriorated from Q3 2021 to Q4 2021 not reaching Q2 2021 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Illinois Tool Works Inc. operating cycle deteriorated from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Illinois Tool Works Inc. cash conversion cycle deteriorated from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021. |
Inventory Turnover
Illinois Tool Works Inc., inventory turnover calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cost of revenue | 2,191) | 2,096) | 2,163) | 2,039) | 2,000) | 1,910) | 1,594) | 1,871) | 2,022) | 2,007) | 2,099) | 2,059) | 2,096) | 2,096) | 2,231) | 2,181) | 2,124) | 2,094) | 2,087) | 2,004) | ||||||
| Inventories | 1,694) | 1,524) | 1,400) | 1,292) | 1,189) | 1,149) | 1,167) | 1,185) | 1,164) | 1,209) | 1,256) | 1,346) | 1,318) | 1,338) | 1,320) | 1,335) | 1,220) | 1,225) | 1,199) | 1,158) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Inventory turnover1 | 5.01 | 5.44 | 5.79 | 5.84 | 6.20 | 6.44 | 6.42 | 6.75 | 7.03 | 6.83 | 6.65 | 6.30 | 6.53 | 6.45 | 6.54 | 6.36 | 6.81 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 0.75 | 0.77 | 0.76 | 0.74 | 0.78 | 0.71 | 0.78 | 0.88 | 0.94 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 2.53 | 2.44 | 2.49 | 2.46 | 2.55 | 2.66 | 2.82 | 2.97 | 3.25 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 4.48 | 4.73 | 4.86 | 5.12 | 5.88 | 6.10 | 6.20 | 6.00 | 5.11 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 3.40 | 3.21 | 3.28 | 3.46 | 3.80 | 4.36 | 4.41 | 4.50 | 4.97 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 4.55 | 4.72 | 4.88 | 4.85 | 4.94 | 4.79 | 4.88 | 5.23 | 5.51 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 19.45 | 19.81 | 18.64 | 17.58 | 16.01 | 16.91 | 15.46 | 14.94 | 14.22 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 5.65 | 5.57 | 5.49 | 5.48 | 5.11 | 4.93 | 4.85 | 4.51 | 5.21 | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Inventory turnover
= (Cost of revenueQ4 2021
+ Cost of revenueQ3 2021
+ Cost of revenueQ2 2021
+ Cost of revenueQ1 2021)
÷ Inventories
= (2,191 + 2,096 + 2,163 + 2,039)
÷ 1,694 = 5.01
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Illinois Tool Works Inc. inventory turnover ratio deteriorated from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021. |
Receivables Turnover
Illinois Tool Works Inc., receivables turnover calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Operating revenue | 3,679) | 3,556) | 3,676) | 3,544) | 3,475) | 3,307) | 2,564) | 3,228) | 3,469) | 3,479) | 3,609) | 3,552) | 3,580) | 3,613) | 3,831) | 3,744) | 3,629) | 3,615) | 3,599) | 3,471) | ||||||
| Trade receivables | 2,840) | 2,729) | 2,786) | 2,662) | 2,506) | 2,494) | 2,156) | 2,424) | 2,461) | 2,499) | 2,629) | 2,715) | 2,622) | 2,777) | 2,878) | 2,874) | 2,628) | 2,672) | 2,629) | 2,534) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Receivables turnover1 | 5.09 | 5.22 | 5.03 | 4.84 | 5.02 | 5.04 | 5.91 | 5.69 | 5.73 | 5.69 | 5.46 | 5.37 | 5.63 | 5.34 | 5.15 | 5.08 | 5.45 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 23.58 | 27.95 | 24.76 | 23.97 | 29.75 | 22.00 | 23.85 | 21.97 | 23.44 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 5.68 | 5.97 | 5.51 | 5.07 | 5.33 | 5.86 | 6.11 | 6.12 | 5.92 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 5.95 | 5.75 | 5.72 | 5.79 | 6.15 | 6.40 | 7.25 | 7.07 | 6.22 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 4.55 | 4.83 | 4.74 | 4.59 | 4.37 | 4.46 | 5.03 | 5.08 | 5.22 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 5.04 | 4.78 | 4.89 | 4.89 | 4.78 | 4.83 | 5.14 | 4.87 | 4.90 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 34.15 | 29.27 | 25.59 | 29.81 | 33.06 | 25.90 | 22.19 | 21.14 | 25.59 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 6.66 | 6.69 | 6.99 | 6.03 | 6.11 | 5.90 | 6.79 | 5.35 | 5.70 | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Receivables turnover
= (Operating revenueQ4 2021
+ Operating revenueQ3 2021
+ Operating revenueQ2 2021
+ Operating revenueQ1 2021)
÷ Trade receivables
= (3,679 + 3,556 + 3,676 + 3,544)
÷ 2,840 = 5.09
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Illinois Tool Works Inc. receivables turnover ratio improved from Q2 2021 to Q3 2021 but then slightly deteriorated from Q3 2021 to Q4 2021 not reaching Q2 2021 level. |
Payables Turnover
Illinois Tool Works Inc., payables turnover calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cost of revenue | 2,191) | 2,096) | 2,163) | 2,039) | 2,000) | 1,910) | 1,594) | 1,871) | 2,022) | 2,007) | 2,099) | 2,059) | 2,096) | 2,096) | 2,231) | 2,181) | 2,124) | 2,094) | 2,087) | 2,004) | ||||||
| Accounts payable | 585) | 565) | 607) | 589) | 534) | 521) | 402) | 488) | 472) | 493) | 512) | 568) | 524) | 576) | 623) | 655) | 590) | 585) | 582) | 574) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Payables turnover1 | 14.51 | 14.69 | 13.36 | 12.81 | 13.81 | 14.20 | 18.64 | 16.39 | 17.35 | 16.76 | 16.31 | 14.93 | 16.42 | 14.99 | 13.85 | 12.96 | 14.08 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 6.40 | 6.20 | 5.45 | 4.90 | 4.94 | 4.25 | 4.77 | 4.69 | 4.63 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 4.36 | 4.61 | 4.57 | 4.46 | 4.75 | 5.86 | 6.31 | 6.05 | 6.15 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 4.75 | 5.11 | 5.22 | 5.66 | 6.24 | 7.15 | 8.18 | 7.88 | 6.78 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 3.32 | 3.33 | 3.35 | 3.56 | 3.67 | 4.67 | 4.99 | 4.57 | 4.40 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 3.61 | 3.83 | 3.76 | 3.86 | 3.86 | 4.27 | 4.32 | 4.23 | 4.25 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 74.34 | 37.83 | 36.15 | 30.31 | 64.48 | 37.34 | 37.46 | 16.70 | 40.16 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 5.93 | 6.06 | 6.52 | 5.67 | 5.56 | 5.96 | 6.92 | 4.73 | 5.28 | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Payables turnover
= (Cost of revenueQ4 2021
+ Cost of revenueQ3 2021
+ Cost of revenueQ2 2021
+ Cost of revenueQ1 2021)
÷ Accounts payable
= (2,191 + 2,096 + 2,163 + 2,039)
÷ 585 = 14.51
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Illinois Tool Works Inc. payables turnover ratio increased from Q2 2021 to Q3 2021 but then slightly decreased from Q3 2021 to Q4 2021. |
Working Capital Turnover
Illinois Tool Works Inc., working capital turnover calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current assets | 6,374) | 6,577) | 6,509) | 6,704) | 6,523) | 6,031) | 5,609) | 5,506) | 6,253) | 6,245) | 6,289) | 6,075) | 5,778) | 5,940) | 6,119) | 6,423) | 7,278) | 6,912) | 6,570) | 6,430) | ||||||
| Less: Current liabilities | 3,470) | 2,996) | 2,960) | 2,680) | 2,589) | 2,540) | 2,042) | 2,032) | 2,154) | 2,223) | 2,188) | 3,961) | 3,542) | 3,663) | 3,547) | 2,925) | 3,053) | 2,867) | 2,826) | 2,875) | ||||||
| Working capital | 2,904) | 3,581) | 3,549) | 4,024) | 3,934) | 3,491) | 3,567) | 3,474) | 4,099) | 4,022) | 4,101) | 2,114) | 2,236) | 2,277) | 2,572) | 3,498) | 4,225) | 4,045) | 3,744) | 3,555) | ||||||
| Operating revenue | 3,679) | 3,556) | 3,676) | 3,544) | 3,475) | 3,307) | 2,564) | 3,228) | 3,469) | 3,479) | 3,609) | 3,552) | 3,580) | 3,613) | 3,831) | 3,744) | 3,629) | 3,615) | 3,599) | 3,471) | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Working capital turnover1 | 4.98 | 3.98 | 3.95 | 3.20 | 3.20 | 3.60 | 3.57 | 3.97 | 3.44 | 3.54 | 3.50 | 6.89 | 6.60 | 6.51 | 5.76 | 4.17 | 3.39 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 2.34 | 2.02 | 2.00 | 1.88 | 1.69 | 1.57 | 1.76 | 4.27 | 15.57 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 3.54 | 2.87 | 2.80 | 2.52 | 2.84 | 3.01 | 3.45 | 4.33 | 4.04 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 65.65 | 12.41 | 21.65 | 5.34 | 5.42 | 6.42 | 7.05 | 5.60 | 5.95 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 4.94 | 1.57 | 1.57 | 1.27 | 2.26 | 5.06 | 6.05 | 8.72 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 5.86 | 5.94 | 4.52 | 4.27 | 3.64 | 3.02 | 3.14 | 6.93 | 5.92 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 11.52 | 10.48 | 12.30 | 11.93 | 12.01 | 12.62 | 13.44 | 17.12 | 19.15 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 9.75 | 8.11 | 10.24 | 9.77 | 7.52 | 7.51 | 9.23 | 9.50 | 26.47 | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Working capital turnover
= (Operating revenueQ4 2021
+ Operating revenueQ3 2021
+ Operating revenueQ2 2021
+ Operating revenueQ1 2021)
÷ Working capital
= (3,679 + 3,556 + 3,676 + 3,544)
÷ 2,904 = 4.98
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Illinois Tool Works Inc. working capital turnover ratio improved from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021. |
Average Inventory Processing Period
Illinois Tool Works Inc., average inventory processing period calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Inventory turnover | 5.01 | 5.44 | 5.79 | 5.84 | 6.20 | 6.44 | 6.42 | 6.75 | 7.03 | 6.83 | 6.65 | 6.30 | 6.53 | 6.45 | 6.54 | 6.36 | 6.81 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average inventory processing period1 | 73 | 67 | 63 | 63 | 59 | 57 | 57 | 54 | 52 | 53 | 55 | 58 | 56 | 57 | 56 | 57 | 54 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 486 | 475 | 478 | 496 | 467 | 516 | 468 | 416 | 388 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 144 | 150 | 146 | 149 | 143 | 137 | 129 | 123 | 112 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 82 | 77 | 75 | 71 | 62 | 60 | 59 | 61 | 71 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 107 | 114 | 111 | 105 | 96 | 84 | 83 | 81 | 74 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 80 | 77 | 75 | 75 | 74 | 76 | 75 | 70 | 66 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 19 | 18 | 20 | 21 | 23 | 22 | 24 | 24 | 26 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 65 | 65 | 66 | 67 | 71 | 74 | 75 | 81 | 70 | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 5.01 = 73
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Illinois Tool Works Inc. number of days of inventory outstanding deteriorated from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021. |
Average Receivable Collection Period
Illinois Tool Works Inc., average receivable collection period calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Receivables turnover | 5.09 | 5.22 | 5.03 | 4.84 | 5.02 | 5.04 | 5.91 | 5.69 | 5.73 | 5.69 | 5.46 | 5.37 | 5.63 | 5.34 | 5.15 | 5.08 | 5.45 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average receivable collection period1 | 72 | 70 | 73 | 75 | 73 | 72 | 62 | 64 | 64 | 64 | 67 | 68 | 65 | 68 | 71 | 72 | 67 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 15 | 13 | 15 | 15 | 12 | 17 | 15 | 17 | 16 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 64 | 61 | 66 | 72 | 68 | 62 | 60 | 60 | 62 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 61 | 63 | 64 | 63 | 59 | 57 | 50 | 52 | 59 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 80 | 76 | 77 | 80 | 83 | 82 | 73 | 72 | 70 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 72 | 76 | 75 | 75 | 76 | 76 | 71 | 75 | 75 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 11 | 12 | 14 | 12 | 11 | 14 | 16 | 17 | 14 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 55 | 55 | 52 | 61 | 60 | 62 | 54 | 68 | 64 | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.09 = 72
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Illinois Tool Works Inc. number of days of receivables outstanding improved from Q2 2021 to Q3 2021 but then slightly deteriorated from Q3 2021 to Q4 2021 not reaching Q2 2021 level. |
Operating Cycle
Illinois Tool Works Inc., operating cycle calculation (quarterly data)
No. days
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Average inventory processing period | 73 | 67 | 63 | 63 | 59 | 57 | 57 | 54 | 52 | 53 | 55 | 58 | 56 | 57 | 56 | 57 | 54 | — | — | — | ||||||
| Average receivable collection period | 72 | 70 | 73 | 75 | 73 | 72 | 62 | 64 | 64 | 64 | 67 | 68 | 65 | 68 | 71 | 72 | 67 | — | — | — | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Operating cycle1 | 145 | 137 | 136 | 138 | 132 | 129 | 119 | 118 | 116 | 117 | 122 | 126 | 121 | 125 | 127 | 129 | 121 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 501 | 488 | 493 | 511 | 479 | 533 | 483 | 433 | 404 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 208 | 211 | 212 | 221 | 211 | 199 | 189 | 183 | 174 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 143 | 140 | 139 | 134 | 121 | 117 | 109 | 113 | 130 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 187 | 190 | 188 | 185 | 179 | 166 | 156 | 153 | 144 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 152 | 153 | 150 | 150 | 150 | 152 | 146 | 145 | 141 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 30 | 30 | 34 | 33 | 34 | 36 | 40 | 41 | 40 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 120 | 120 | 118 | 128 | 131 | 136 | 129 | 149 | 134 | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 73 + 72 = 145
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Illinois Tool Works Inc. operating cycle deteriorated from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021. |
Average Payables Payment Period
Illinois Tool Works Inc., average payables payment period calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Payables turnover | 14.51 | 14.69 | 13.36 | 12.81 | 13.81 | 14.20 | 18.64 | 16.39 | 17.35 | 16.76 | 16.31 | 14.93 | 16.42 | 14.99 | 13.85 | 12.96 | 14.08 | — | — | — | ||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||
| Average payables payment period1 | 25 | 25 | 27 | 29 | 26 | 26 | 20 | 22 | 21 | 22 | 22 | 24 | 22 | 24 | 26 | 28 | 26 | — | — | — | ||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 57 | 59 | 67 | 74 | 74 | 86 | 77 | 78 | 79 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 84 | 79 | 80 | 82 | 77 | 62 | 58 | 60 | 59 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 77 | 71 | 70 | 65 | 58 | 51 | 45 | 46 | 54 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 110 | 109 | 109 | 103 | 100 | 78 | 73 | 80 | 83 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 101 | 95 | 97 | 95 | 95 | 85 | 85 | 86 | 86 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 5 | 10 | 10 | 12 | 6 | 10 | 10 | 22 | 9 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 62 | 60 | 56 | 64 | 66 | 61 | 53 | 77 | 69 | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 14.51 = 25
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Cash Conversion Cycle
Illinois Tool Works Inc., cash conversion cycle calculation (quarterly data)
No. days
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||
| Average inventory processing period | 73 | 67 | 63 | 63 | 59 | 57 | 57 | 54 | 52 | 53 | 55 | 58 | 56 | 57 | 56 | 57 | 54 | — | — | — | ||||||
| Average receivable collection period | 72 | 70 | 73 | 75 | 73 | 72 | 62 | 64 | 64 | 64 | 67 | 68 | 65 | 68 | 71 | 72 | 67 | — | — | — | ||||||
| Average payables payment period | 25 | 25 | 27 | 29 | 26 | 26 | 20 | 22 | 21 | 22 | 22 | 24 | 22 | 24 | 26 | 28 | 26 | — | — | — | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||
| Cash conversion cycle1 | 120 | 112 | 109 | 109 | 106 | 103 | 99 | 96 | 95 | 95 | 100 | 102 | 99 | 101 | 101 | 101 | 95 | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | 444 | 429 | 426 | 437 | 405 | 447 | 406 | 355 | 325 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 124 | 132 | 132 | 139 | 134 | 137 | 131 | 123 | 115 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 66 | 69 | 69 | 69 | 63 | 66 | 64 | 67 | 76 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 77 | 81 | 79 | 82 | 79 | 88 | 83 | 73 | 61 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 51 | 58 | 53 | 55 | 55 | 67 | 61 | 59 | 55 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 25 | 20 | 24 | 21 | 28 | 26 | 30 | 19 | 31 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 58 | 60 | 62 | 64 | 65 | 75 | 76 | 72 | 65 | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q4 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 73 + 72 – 25 = 120
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Illinois Tool Works Inc. cash conversion cycle deteriorated from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021. |