Illinois Tool Works Inc (ITW)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.28% | 42.16% | 40.82% | 41.27% | 41.35% |
| Operating profit margin | 26.82% | 25.08% | 23.79% | 24.05% | 22.92% |
| Pretax margin | 27.81% | 23.74% | 24.11% | 23.01% | 21.50% |
| Net profit margin | 21.94% | 18.36% | 19.04% | 18.64% | 16.77% |
Illinois Tool Works Inc has shown a consistent gross profit margin over the years, with a slight decline from 41.35% in 2020 to 40.82% in 2022, followed by an increase to 44.28% in 2024. This indicates the company's ability to effectively manage production costs and generate profits from its core operations.
The operating profit margin has also shown a positive trend, increasing from 22.92% in 2020 to 26.82% in 2024. This signifies improved operational efficiency and cost management by Illinois Tool Works Inc in delivering profitability at the operating level.
The pretax margin has demonstrated fluctuations over the years, with a notable increase from 21.50% in 2020 to 27.81% in 2024. This indicates the company's ability to manage its pre-tax earnings relative to its revenue, showing a strong performance in generating profits before taxes.
Net profit margin has shown an overall increasing trend, reflecting the company's ability to effectively manage expenses and generate profits for its shareholders. The margin increased from 16.77% in 2020 to 21.94% in 2024, indicating growth in the bottom line profitability of Illinois Tool Works Inc.
In conclusion, Illinois Tool Works Inc's profitability ratios demonstrate a positive performance over the years, showcasing the company's ability to effectively manage costs, optimize operations, and generate growing profits.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 31.14% | 26.03% | 24.58% | 21.63% | 18.46% |
| Return on assets (ROA) | 25.47% | 19.06% | 19.67% | 16.76% | 13.51% |
| Return on total capital | 141.85% | 134.13% | 122.73% | 95.92% | 90.60% |
| Return on equity (ROE) | 105.16% | 98.17% | 98.25% | 74.32% | 66.30% |
Illinois Tool Works Inc has shown a positive trend in its profitability ratios over the years.
- The Operating return on assets (Operating ROA) has steadily increased from 18.46% in 2020 to 31.14% in 2024, indicating that the company is efficiently generating profits from its operating assets.
- The Return on assets (ROA) has also demonstrated consistent growth, rising from 13.51% in 2020 to 25.47% in 2024. This metric reflects the company's ability to generate earnings relative to its total assets.
- The Return on total capital has shown a significant increase, escalating from 90.60% in 2020 to 141.85% in 2024. This demonstrates the company's effectiveness in generating returns from both debt and equity investments.
- The Return on equity (ROE) has exhibited a positive trend, increasing from 66.30% in 2020 to 105.16% in 2024. This ratio signifies the company's capacity to generate profits for its shareholders from the equity invested in the business.
Overall, the improving profitability ratios of Illinois Tool Works Inc reflect its efficient utilization of assets and capital to generate increasing returns for its stakeholders.