Illinois Tool Works Inc (ITW)

Total 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
Total assets	US$ in thousands	15,518,000	15,395,000	15,652,000	15,921,000	15,422,000	15,226,000	15,666,000	16,286,000	16,077,000	15,517,000	15,580,000	15,663,000	15,612,000	14,940,000	14,263,000	14,149,000	15,068,000	14,960,000	15,187,000	15,326,000
Total asset turnover		1.02	1.03	1.01	0.99	1.02	1.01	0.96	0.90	0.89	0.91	0.89	0.81	0.80	0.83	0.88	0.96	0.93	0.94	0.94	0.95

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $15,804,000K ÷ $15,518,000K
= 1.02

The total asset turnover ratio for Illinois Tool Works, Inc. has been relatively stable over the past eight quarters, ranging from 0.91 to 1.05. The highest value was recorded in Q3 2023 at 1.05 and the lowest in Q1 2022 at 0.91. Overall, the company's ability to generate sales from its total assets has been moderate, with an average ratio of approximately 1.00. This suggests that Illinois Tool Works is effectively utilizing its assets to generate revenue, indicating efficient asset management. However, it is important to consider other factors such as industry benchmarks and trend analysis to gain a more comprehensive understanding of the company's operational efficiency and profitability.