Illinois Tool Works Inc (ITW)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 3,823,000 | 3,842,000 | 3,326,000 | 2,704,000 | 3,288,000 |
| Revenue | US$ in thousands | 15,803,000 | 15,723,000 | 14,244,000 | 12,361,000 | 13,887,000 |
| Pretax margin | 24.19% | 24.44% | 23.35% | 21.88% | 23.68% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $3,823,000K ÷ $15,803,000K
= 24.19%
The pretax margin of Illinois Tool Works, Inc. has shown a consistent trend over the past five years. It ranged from 21.50% in 2020 to 24.11% in 2022. In 2023, the pretax margin decreased slightly to 23.74%. This indicates that the company is able to effectively manage its operating expenses relative to its revenue, resulting in a healthy level of profitability before accounting for taxes. Overall, Illinois Tool Works, Inc. has maintained a strong pretax margin performance, demonstrating operational efficiency and profitability in its business operations.
Peer comparison
Dec 31, 2023
Company name
Symbol
Pretax margin
Illinois Tool Works Inc
ITW
24.19%
Gates Industrial Corporation plc
GTES
7.32%
Ingersoll Rand Inc
IR
14.82%
Zebra Technologies Corporation
ZBRA
7.29%
Zurn Elkay Water Solutions Corporation
ZWS
10.15%