Illinois Tool Works Inc (ITW)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	15,898,000	15,949,000	16,014,000	16,061,000	16,107,000	16,095,000	16,075,000	16,012,000	15,932,000	15,640,000	15,185,000	14,850,000	14,455,000	14,251,000	14,002,000	12,890,000	12,574,000	12,568,000	12,740,000	13,785,000
Property, plant and equipment	US$ in thousands	—	—	—	—	—	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
Fixed asset turnover		—	—	—	—	—	8.45	8.46	8.49	8.62	9.17	8.75	8.27	7.99	8.17	7.92	7.38	7.08	7.24	7.45	8.09

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $15,898,000K ÷ $—K
= —

The fixed asset turnover ratio measures a company's ability to generate sales revenue from its investment in fixed assets. For Illinois Tool Works Inc, the trend in fixed asset turnover has shown an overall improvement over the periods provided in the data.

From March 31, 2020, to September 30, 2022, the fixed asset turnover ratio consistently increased from 8.09 to 9.17, indicating that the company was becoming more efficient in utilizing its fixed assets to generate sales. This improvement suggests that Illinois Tool Works was able to generate more revenue relative to its investment in fixed assets during this period.

However, starting from December 31, 2022, the fixed asset turnover ratio began to fluctuate, with values ranging from 8.62 to 8.45 until December 31, 2023. The fluctuations in the ratio could be attributed to various factors such as changes in sales volume, fluctuations in asset values, or operational inefficiencies.

Notably, from March 31, 2023, to June 30, 2023, the fixed asset turnover ratio declined slightly from 8.49 to 8.46, indicating a temporary decrease in efficiency in generating sales from fixed assets. This slight decrease may warrant further investigation to understand the underlying reasons behind it.

As of December 31, 2023, the data shows a dash indicating that the fixed asset turnover ratio for that period is not available. It is important for investors and analysts to monitor the company's fixed asset turnover ratio in subsequent periods to assess the company's ability to efficiently utilize its fixed assets for revenue generation.