Illinois Tool Works Inc (ITW)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	7,015,000	6,975,000	6,951,000	6,941,000	6,791,000	6,782,000	6,710,000	6,599,000	6,503,000	6,329,000	6,149,000	6,043,000	5,966,000	5,953,000	5,890,000	5,347,000	5,199,000	5,171,000	5,246,000	5,786,000
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
Gross profit margin		44.13%	43.73%	43.41%	43.22%	42.16%	42.14%	41.74%	41.21%	40.82%	40.47%	40.49%	40.69%	41.27%	41.77%	42.07%	41.48%	41.35%	41.14%	41.18%	41.97%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $7,015,000K ÷ $15,898,000K
= 44.13%

The gross profit margin of Illinois Tool Works Inc has shown a fluctuating trend over the period covered in the data. Starting at 41.97% in March 2020, the margin dipped slightly to 41.18% by June 2020 before stabilizing around the low 41% range for the remainder of 2020 and the first half of 2021.

There was a modest increase in the gross profit margin to 42.07% in June 2021, followed by a slight decrease to 41.77% by September 2021. The margin remained relatively stable around the low 40% range for the latter half of 2021 and the first half of 2022, with a slight uptick to 41.21% by March 2023.

The trend then shifted upwards consistently from March 2023 to December 2024, with the gross profit margin steadily improving from 41.21% to 44.13%. This upward trajectory indicates an enhancement in the company's ability to generate profits from its sales after accounting for the cost of goods sold over this period. Overall, the increase in the gross profit margin demonstrates positive operational efficiency and pricing strategies employed by Illinois Tool Works Inc during the analyzed timeframe.