Illinois Tool Works Inc (ITW)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 4,264,000 | 4,040,000 | 3,790,000 | 3,477,000 | 2,882,000 |
| Revenue | US$ in thousands | 15,898,000 | 16,107,000 | 15,932,000 | 14,455,000 | 12,574,000 |
| Operating profit margin | 26.82% | 25.08% | 23.79% | 24.05% | 22.92% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $4,264,000K ÷ $15,898,000K
= 26.82%
Illinois Tool Works Inc has shown a consistently improving trend in its operating profit margin over the period from December 31, 2020, to December 31, 2024. The operating profit margin has increased from 22.92% in 2020 to 26.82% in 2024. This indicates that the company has been able to control its operating expenses effectively while increasing its operating income, resulting in a higher proportion of revenue being converted into operating profits.
The steady improvement in the operating profit margin reflects favorable operational efficiency and cost management within the company. It suggests that Illinois Tool Works Inc has been able to enhance its profitability over the years by efficiently managing its production and operating costs. This trend may indicate that the company is making strategic decisions to optimize its operations and drive sustainable growth in its bottom line.
Overall, the increasing operating profit margin of Illinois Tool Works Inc demonstrates the company's ability to generate more profit from its core business activities, indicating operational effectiveness and potential financial strength.
Peer comparison
Dec 31, 2024