Illinois Tool Works Inc (ITW)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 3,823,000 | 4,017,000 | 3,961,000 | 3,903,000 | 3,842,000 | 3,513,000 | 3,362,000 | 3,322,000 | 3,326,000 | 3,358,000 | 3,291,000 | 2,834,000 | 2,704,000 | 2,711,000 | 2,814,000 | 3,233,000 | 3,288,000 | 3,273,000 | 3,266,000 | 3,335,000 |
| 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 |
| Pretax margin | 24.19% | 25.36% | 25.02% | 24.72% | 24.44% | 22.76% | 22.44% | 22.69% | 23.35% | 23.82% | 23.77% | 22.25% | 21.77% | 21.84% | 22.36% | 23.72% | 23.59% | 23.30% | 22.94% | 22.98% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $3,823,000K ÷ $15,804,000K
= 24.19%
Illinois Tool Works, Inc.'s pretax margin has shown a consistent upward trend over the past four quarters, increasing from 22.37% in Q1 2022 to 23.74% in Q4 2023. This indicates that the company has been successful in controlling its operating expenses relative to its pre-tax income. The pretax margin peaked at 24.96% in Q3 2023, demonstrating strong profitability during that period. Overall, the company has maintained healthy pretax margins above 22% throughout the analyzed quarters, reflecting efficient cost management and profitability in its operations.
Peer comparison
Dec 31, 2023
Company name
Symbol
Pretax margin
Illinois Tool Works Inc
ITW
24.19%
Gates Industrial Corporation plc
GTES
8.68%
Ingersoll Rand Inc
IR
14.82%
Zebra Technologies Corporation
ZBRA
7.23%
Zurn Elkay Water Solutions Corporation
ZWS
11.57%