Illinois Tool Works Inc (ITW)

Operating profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	4,264,000	4,221,000	4,239,000	4,195,000	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
Revenue (ttm)	US$ in thousands	15,898,000	15,949,000	16,014,000	16,061,000	16,107,000	16,095,000	16,075,000	16,012,000	15,932,000	15,640,000	15,185,000	14,850,000	14,455,000	14,251,000	14,002,000	12,890,000	12,574,000	12,568,000	12,740,000	13,785,000
Operating profit margin		26.82%	26.47%	26.47%	26.12%	25.08%	25.09%	24.58%	24.15%	23.79%	23.26%	23.05%	23.35%	24.05%	24.74%	24.78%	23.48%	22.92%	22.46%	22.78%	24.11%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $4,264,000K ÷ $15,898,000K
= 26.82%

The operating profit margin of Illinois Tool Works Inc has shown a generally positive trend over the past few years. It started at 24.11% in March 2020, declined slightly to 22.46% by September 2020, but then began to recover and increase steadily.

There were fluctuations in the operating profit margin throughout the quarters, with some quarters showing minor decreases, but overall the trend has been upwards. By December 2024, the operating profit margin reached its highest point at 26.82%.

The company's ability to generate profits from its core operations has improved over the period under review, indicating effective cost management and operational efficiency. This trend suggests that Illinois Tool Works Inc has been successful in increasing profitability relative to its operating costs, which can be seen as a positive indicator of financial health and management effectiveness.