Illinois Tool Works Inc (ITW)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 4,040,000 | 3,790,000 | 3,477,000 | 2,882,000 | 3,402,000 |
| Revenue | US$ in thousands | 15,803,000 | 15,723,000 | 14,244,000 | 12,361,000 | 13,887,000 |
| Operating profit margin | 25.56% | 24.10% | 24.41% | 23.32% | 24.50% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $4,040,000K ÷ $15,803,000K
= 25.56%
The operating profit margin of Illinois Tool Works, Inc. has shown relatively stable performance over the past five years. The margin increased from 22.92% in 2020 to 25.08% in 2023, indicating an improvement in the company's ability to generate profits from its core operations. Despite some fluctuations in between, the company managed to maintain a consistently strong operating profit margin above 23% during this period. This suggests efficient cost management and effective revenue generation strategies in place. Overall, Illinois Tool Works, Inc. has demonstrated a solid performance in terms of operating profitability.
Peer comparison
Dec 31, 2023