Illinois Tool Works Inc (ITW)

Operating 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
Operating income (ttm)	US$ in thousands	4,040,000	4,038,000	3,951,000	3,867,000	3,790,000	3,638,000	3,500,000	3,467,000	3,477,000	3,526,000	3,470,000	3,026,000	2,882,000	2,823,000	2,902,000	3,324,000	3,402,000	3,438,000	3,459,000	3,520,000
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
Operating profit margin		25.56%	25.50%	24.96%	24.49%	24.11%	23.57%	23.36%	23.68%	24.41%	25.01%	25.06%	23.76%	23.20%	22.74%	23.06%	24.39%	24.41%	24.47%	24.30%	24.25%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $4,040,000K ÷ $15,804,000K
= 25.56%

The operating profit margin of Illinois Tool Works, Inc. has shown positive trends over the past eight quarters. It increased from 23.79% in Q4 2022 to 25.08% in Q4 2023, indicating an improvement in the company's ability to generate profits from its core operations. Although there were slight fluctuations quarter over quarter, the margins remained relatively stable and above 23% throughout the period.

This upward trend suggests that Illinois Tool Works has been effectively managing its operating expenses relative to its revenue, resulting in a consistent and healthy level of profitability. The company's ability to maintain a robust operating profit margin is a positive indicator of its operational efficiency and could be seen as a favorable aspect by investors and stakeholders.