Illinois Tool Works Inc (ITW)

Net 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
Net income (ttm)	US$ in thousands	2,957,000	3,147,000	3,102,000	3,086,000	3,034,000	2,736,000	2,648,000	2,685,000	2,694,000	2,727,000	2,670,000	2,214,000	2,109,000	2,108,000	2,186,000	2,490,000	2,521,000	2,487,000	2,465,000	2,508,000
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
Net profit margin		18.71%	19.87%	19.59%	19.54%	19.30%	17.73%	17.67%	18.34%	18.91%	19.34%	19.28%	17.39%	16.98%	16.98%	17.37%	18.27%	18.09%	17.70%	17.32%	17.28%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $2,957,000K ÷ $15,804,000K
= 18.71%

The net profit margin of Illinois Tool Works, Inc. has been relatively stable over the past eight quarters, ranging from 17.44% to 19.55%. The company's highest net profit margin was recorded in Q3 2023 at 19.55%, while the lowest was in Q2 2022 at 17.44%.

Overall, Illinois Tool Works has maintained a strong profitability level, with an average net profit margin of approximately 18.67% over the period analyzed. This indicates that the company is efficiently managing its expenses and generating a healthy level of net income relative to its revenue.

The consistent performance of Illinois Tool Works in terms of net profit margin suggests that the company has been able to sustain its profitability even in challenging market conditions. Investors may view this as a positive indicator of the company's financial health and operational efficiency.