Illinois Tool Works Inc (ITW)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 15,067,000 | 15,824,000 | 15,577,000 | 15,653,000 | 15,518,000 | 15,395,000 | 15,652,000 | 15,921,000 | 15,422,000 | 15,226,000 | 15,666,000 | 16,286,000 | 16,077,000 | 15,517,000 | 15,580,000 | 15,663,000 | 15,612,000 | 14,940,000 | 14,263,000 | 14,149,000 |
| Operating ROA | 28.30% | 26.67% | 27.21% | 26.80% | 26.03% | 26.23% | 25.24% | 24.29% | 24.58% | 23.89% | 22.34% | 21.29% | 21.63% | 22.72% | 22.27% | 19.32% | 18.46% | 18.90% | 20.35% | 23.49% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $4,264,000K ÷ $15,067,000K
= 28.30%
Illinois Tool Works Inc's operating return on assets (operating ROA) has shown a generally positive trend over the observed periods from March 31, 2020, to December 31, 2024. The operating ROA started at a robust 23.49% in March 2020, indicating efficient management in generating operating profits relative to its assets.
Subsequently, there was a slight decline in the operating ROA to 18.46% by December 2020, suggesting a potential decrease in the company's operational efficiency. However, the operating ROA rebounded and remained relatively stable around the range of 18-22% through June 2021 to March 2022, showcasing consistency in utilizing assets effectively to generate operating income.
From June 2022 onwards, there was a notable improvement in the operating ROA, reaching a peak of 28.30% by December 31, 2024. This increase indicates improved operational efficiency and profitability, reflecting positively on the company's ability to generate profits from its asset base.
Overall, the upward trajectory of Illinois Tool Works Inc's operating ROA over the analyzed periods signifies the company's effectiveness in managing its operations and utilizing its assets efficiently to generate operating income.
Peer comparison
Dec 31, 2024