Illinois Tool Works Inc (ITW)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 6,358,000 | 6,174,000 | 5,652,000 | 4,901,000 | 5,611,000 |
| Revenue | US$ in thousands | 15,803,000 | 15,723,000 | 14,244,000 | 12,361,000 | 13,887,000 |
| Gross profit margin | 40.23% | 39.27% | 39.68% | 39.65% | 40.40% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $6,358,000K ÷ $15,803,000K
= 40.23%
The gross profit margin of Illinois Tool Works, Inc. has shown some fluctuations over the past five years. In 2023, the gross profit margin increased to 42.16% from 40.82% in 2022. This suggests that the company was able to effectively manage its production costs relative to its revenue in 2023. Compared to 2021 when the gross profit margin was 41.27%, the increase in 2023 indicates a positive trend in the company's ability to generate profits from its core operations.
However, the gross profit margin in 2023 is slightly lower than in 2019 when it was 41.97%. This could indicate some challenges faced by the company in maintaining profitability levels compared to the previous years. Overall, while there have been fluctuations in the gross profit margin of Illinois Tool Works, Inc. over the past five years, the company's ability to manage production costs and generate profits from its core operations seems to have improved in 2023 compared to the previous year.
Peer comparison
Dec 31, 2023