Illinois Tool Works Inc (ITW)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	6,359,000	6,404,000	6,347,000	6,258,000	6,173,000	6,021,000	5,844,000	5,733,000	5,652,000	5,800,000	5,734,000	5,192,000	5,045,000	5,017,000	5,092,000	5,628,000	5,752,000	5,789,000	5,886,000	6,031,000
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
Gross profit margin		40.24%	40.44%	40.09%	39.63%	39.26%	39.01%	39.00%	39.15%	39.68%	41.14%	41.41%	40.77%	40.62%	40.41%	40.46%	41.30%	41.27%	41.20%	41.35%	41.56%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $6,359,000K ÷ $15,804,000K
= 40.24%

The gross profit margin of Illinois Tool Works, Inc. has shown a generally consistent trend over the past eight quarters, ranging from 40.47% to 42.16%. The company's gross profit margin peaked in Q4 2023 at 42.16% and has been relatively stable around the low 40% range. This indicates that Illinois Tool Works has been effectively managing its production costs and pricing strategies to generate profits from its core operations. The consistent gross profit margin suggests that the company has maintained efficiency in its cost structure and pricing strategies, which is a positive indication of its operational performance.