Illinois Tool Works Inc (ITW)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,488,000 | 2,957,000 | 3,034,000 | 2,694,000 | 2,109,000 |
| Revenue | US$ in thousands | 15,898,000 | 16,107,000 | 15,932,000 | 14,455,000 | 12,574,000 |
| Net profit margin | 21.94% | 18.36% | 19.04% | 18.64% | 16.77% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $3,488,000K ÷ $15,898,000K
= 21.94%
Illinois Tool Works Inc has shown a positive trend in its net profit margin over the past five years. The net profit margin increased steadily from 16.77% in December 31, 2020, to 21.94% in December 31, 2024. This indicates a consistent improvement in the company's ability to convert revenue into profit after accounting for all expenses.
The company's ability to manage costs and improve operational efficiency has contributed to the growth in net profit margin. A higher net profit margin suggests that Illinois Tool Works Inc is effectively controlling its expenses and operating more efficiently, thereby generating more profits for each dollar of revenue.
Overall, the increasing trend in net profit margin reflects positively on the company's profitability and financial health, demonstrating its ability to generate sustained earnings growth over the years.
Peer comparison
Dec 31, 2024