Illinois Tool Works Inc (ITW)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 15,804,000 | 15,837,000 | 15,832,000 | 15,791,000 | 15,722,000 | 15,435,000 | 14,983,000 | 14,643,000 | 14,244,000 | 14,098,000 | 13,846,000 | 12,735,000 | 12,420,000 | 12,414,000 | 12,586,000 | 13,627,000 | 13,939,000 | 14,050,000 | 14,236,000 | 14,513,000 |
| Property, plant and equipment | US$ in thousands | 1,976,000 | 1,904,000 | 1,901,000 | 1,885,000 | 1,848,000 | 1,705,000 | 1,736,000 | 1,795,000 | 1,809,000 | 1,744,000 | 1,767,000 | 1,746,000 | 1,777,000 | 1,736,000 | 1,711,000 | 1,704,000 | 1,729,000 | 1,693,000 | 1,717,000 | 1,765,000 |
| Fixed asset turnover | 8.00 | 8.32 | 8.33 | 8.38 | 8.51 | 9.05 | 8.63 | 8.16 | 7.87 | 8.08 | 7.84 | 7.29 | 6.99 | 7.15 | 7.36 | 8.00 | 8.06 | 8.30 | 8.29 | 8.22 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $15,804,000K ÷ $1,976,000K
= 8.00
The fixed asset turnover ratio for Illinois Tool Works, Inc. has been relatively stable over the past eight quarters, ranging from a low of 8.15 in Q4 2023 to a high of 9.17 in Q3 2022. This ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.
A high fixed asset turnover ratio indicates that Illinois Tool Works is effectively using its fixed assets to generate sales. It shows that the company is efficient in utilizing its property, plant, and equipment to generate revenue. The consecutive ratios above 8 imply a consistent trend of efficient asset management.
However, the slight decline in the fixed asset turnover ratio from Q3 2022 to Q4 2023 could indicate a potential decrease in efficiency in utilizing fixed assets to generate revenue compared to the previous quarters. Further analysis would be needed to determine the reasons behind this decrease and assess the impact on the company's overall operational performance.
Peer comparison
Dec 31, 2023
See also:
Illinois Tool Works Inc Net Fixed Asset Turnover (Quarterly Data)