Illinois Tool Works Inc (ITW)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,803,000 | 15,723,000 | 14,244,000 | 12,361,000 | 13,887,000 |
| Total assets | US$ in thousands | 15,518,000 | 15,422,000 | 16,077,000 | 15,612,000 | 15,068,000 |
| Total asset turnover | 1.02 | 1.02 | 0.89 | 0.79 | 0.92 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $15,803,000K ÷ $15,518,000K
= 1.02
The total asset turnover ratio for Illinois Tool Works, Inc. has shown a generally increasing trend over the past five years. From 2019 to 2020, there was a slight decline in the ratio to 0.81, indicating that the company generated $0.81 in sales for every dollar of assets. However, this was followed by significant improvements in subsequent years, reaching 1.04 in 2023.
A total asset turnover ratio exceeding 1 implies that the company is effectively utilizing its assets to generate sales revenue. This increase in efficiency over the years suggests that Illinois Tool Works has been able to enhance its operational performance and utilize its assets more effectively to drive sales growth.
Overall, the improving trend in total asset turnover indicates that Illinois Tool Works has enhanced its asset management and operational efficiency, translating into better utilization of resources and potentially higher profitability.
Peer comparison
Dec 31, 2023