Illinois Tool Works Inc (ITW)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 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 | 15,068,000 | 14,960,000 | 15,187,000 | 15,326,000 |
| Operating ROA | 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% | 22.58% | 22.98% | 22.78% | 22.97% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $4,040,000K ÷ $15,518,000K
= 26.03%
Illinois Tool Works, Inc. has demonstrated consistent improvement in its operating return on assets (operating ROA) over the past eight quarters. The company's operating ROA has shown an upward trend, increasing from 21.29% in Q1 2022 to 26.03% in Q4 2023. This indicates that Illinois Tool Works has been effectively utilizing its assets to generate operating income.
The operating ROA values for Q2 and Q3 in 2023 were slightly lower compared to Q4 2023, but they remained relatively stable, ranging between 24.29% and 26.23%. This suggests that the company's operating efficiency was maintained during this period.
Looking further back, Illinois Tool Works' operating ROA has experienced notable growth compared to the figures from Q1 2022 to Q2 2022, with an increase of around 4.04%. This improvement indicates that the company has been able to extract more earnings from its assets over time, reflecting operational effectiveness and efficiency.
Overall, the consistent increase in Illinois Tool Works' operating ROA over the past eight quarters signifies the company's ability to generate higher operating income relative to its assets. This positive trend is a favorable indicator of the company's operational performance and management's capability to optimize asset utilization for profitability.
Peer comparison
Dec 31, 2023