Illinois Tool Works Inc (ITW)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	2,957,000	3,034,000	2,694,000	2,109,000	2,521,000
Revenue	US$ in thousands	15,803,000	15,723,000	14,244,000	12,361,000	13,887,000
Net profit margin		18.71%	19.30%	18.91%	17.06%	18.15%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $2,957,000K ÷ $15,803,000K
= 18.71%

The net profit margin of Illinois Tool Works, Inc. has exhibited a fluctuating trend over the past five years. In 2023, the net profit margin decreased slightly to 18.36% from 19.04% in 2022, but remained relatively stable compared to previous years. This slight decrease may indicate potential challenges or cost pressures faced by the company during the year.

Comparing the most recent net profit margin to the figures from 2021 and 2020, it is evident that Illinois Tool Works, Inc. has been able to maintain a relatively healthy level of profitability despite potential economic uncertainties and market fluctuations. The company's ability to sustain an average net profit margin of around 18% over the past three years demonstrates a consistent performance in generating profits relative to its revenue.

While the net profit margin saw a peak in 2019 at 17.87%, the subsequent years have shown a gradual improvement in profitability. Overall, the net profit margin of Illinois Tool Works, Inc. indicates a solid financial performance and management efficiency in converting revenue into profits, albeit with some variations in recent years.