Illinois Tool Works Inc (ITW)

Total 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
Total assets	US$ in thousands	15,067,000	15,824,000	15,577,000	15,653,000	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
Total asset turnover		1.06	1.01	1.03	1.03	1.04	1.05	1.03	1.01	1.03	1.03	0.97	0.91	0.90	0.92	0.90	0.82	0.81	0.84	0.89	0.97

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $15,898,000K ÷ $15,067,000K
= 1.06

Illinois Tool Works Inc's total asset turnover has shown a fluctuating trend over the past few years. The ratio has ranged from 0.81 to 1.06, indicating variations in the company's efficiency in generating sales from its total assets.

From March 31, 2020, to December 31, 2020, the total asset turnover decreased gradually from 0.97 to 0.81, suggesting that the company may have experienced challenges in utilizing its assets to generate revenue efficiently during that period.

However, from March 31, 2021, to December 31, 2024, the total asset turnover generally improved, fluctuating between 0.82 and 1.06. This indicates that Illinois Tool Works Inc enhanced its effectiveness in utilizing its assets to generate sales over this period.

Overall, a higher total asset turnover indicates that the company is better at generating revenue from its assets, which is a positive sign for investors and stakeholders. The company's ability to consistently improve its total asset turnover ratio demonstrates its efficiency in utilizing assets to drive sales growth.