Illinois Tool Works Inc (ITW)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,898,000 | 16,107,000 | 15,932,000 | 14,455,000 | 12,574,000 |
| Total assets | US$ in thousands | 13,692,000 | 15,518,000 | 15,422,000 | 16,077,000 | 15,612,000 |
| Total asset turnover | 1.16 | 1.04 | 1.03 | 0.90 | 0.81 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $15,898,000K ÷ $13,692,000K
= 1.16
The total asset turnover of Illinois Tool Works Inc has shown an increasing trend over the past five years. The ratio has improved from 0.81 in December 31, 2020, to 1.16 in December 31, 2024. This indicates that the company is generating more revenue for each dollar of assets invested, reflecting improved efficiency in asset utilization.
The rising total asset turnover suggests that Illinois Tool Works Inc has been able to effectively leverage its assets to drive sales growth. This could be due to better management of inventory, efficient production processes, or effective utilization of resources.
Overall, the increasing total asset turnover is a positive sign for Illinois Tool Works Inc, as it indicates that the company is becoming more efficient in generating revenue from its assets over time.
Peer comparison
Dec 31, 2024