Illinois Tool Works Inc (ITW)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 40.24% | 40.44% | 40.09% | 39.63% | 39.26% | 39.01% | 39.00% | 39.15% | 39.68% | 41.14% | 41.41% | 40.77% | 40.62% | 40.41% | 40.46% | 41.30% | 41.27% | 41.20% | 41.35% | 41.56% |
| Operating profit margin | 25.56% | 25.50% | 24.96% | 24.49% | 24.11% | 23.57% | 23.36% | 23.68% | 24.41% | 25.01% | 25.06% | 23.76% | 23.20% | 22.74% | 23.06% | 24.39% | 24.41% | 24.47% | 24.30% | 24.25% |
| 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% |
| Net profit margin | 18.71% | 19.87% | 19.59% | 19.54% | 19.30% | 17.73% | 17.67% | 18.34% | 18.91% | 19.34% | 19.28% | 17.39% | 16.98% | 16.98% | 17.37% | 18.27% | 18.09% | 17.70% | 17.32% | 17.28% |
Illinois Tool Works, Inc. has demonstrated consistent profitability over the past eight quarters as evidenced by its various profitability ratios.
1. Gross Profit Margin: The company's gross profit margin has been relatively stable, ranging between 41.21% and 42.16%. This indicates that Illinois Tool Works effectively manages its production costs and pricing strategies to generate a strong gross profit.
2. Operating Profit Margin: The operating profit margin has also shown consistency, with values fluctuating between 23.05% and 25.09%. This suggests that the company efficiently controls its operating expenses, resulting in a healthy operating profit relative to its revenue.
3. Pretax Margin: The pretax margin has displayed a relatively steady performance, ranging from 22.14% to 24.96%. This metric indicates the company's ability to efficiently manage its operating and non-operating expenses before accounting for taxes, leading to consistent profitability levels.
4. Net Profit Margin: Illinois Tool Works' net profit margin has remained fairly stable, oscillating between 17.44% and 19.55%. This ratio reflects the company's ability to generate profits after accounting for all expenses, including interest and taxes, and demonstrates a consistent bottom-line profitability over the analyzed periods.
Overall, Illinois Tool Works, Inc. exhibits commendable profitability ratios, showcasing its ability to effectively manage costs, generate revenue, and maintain consistent levels of profitability over the evaluated quarters.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 19.06% | 20.44% | 19.82% | 19.38% | 19.67% | 17.97% | 16.90% | 16.49% | 16.76% | 17.57% | 17.14% | 14.14% | 13.51% | 14.11% | 15.33% | 17.60% | 16.73% | 16.62% | 16.23% | 16.36% |
| Return on total capital | 43.20% | 41.12% | 39.35% | 44.91% | 40.92% | 40.63% | 36.87% | 33.34% | 33.01% | 29.52% | 28.52% | 24.90% | 26.31% | 23.83% | 25.97% | 31.71% | 31.56% | 29.77% | 29.73% | 33.86% |
| Return on equity (ROE) | 98.17% | 104.80% | 100.29% | 99.55% | 98.25% | 90.81% | 78.39% | 74.98% | 74.32% | 78.09% | 75.85% | 67.62% | 66.30% | 78.19% | 92.75% | 109.07% | 83.31% | 83.85% | 79.75% | 78.47% |
Illinois Tool Works, Inc. demonstrates strong profitability performance based on the provided ratios. The Operating return on assets (Operating ROA) has shown a consistent upward trend, standing at an impressive 26.03% in Q4 2023. This indicates the company's ability to generate operating income relative to its total assets, reflecting efficient asset utilization and operational effectiveness.
Return on assets (ROA) has also exhibited a positive trajectory, consistently exceeding 19% throughout the quarters. This metric signifies the company's profitability concerning its total assets, with Q3 2023 showing the highest ROA at 20.44%.
Moreover, the Return on total capital and Return on equity (ROE) metrics highlight Illinois Tool Works, Inc.'s effective capital management and shareholder value creation. The company achieved a remarkable Return on equity (ROE) of 98.17% in Q4 2023, indicating that for every dollar of equity invested, the company generated a profit of 98.17 cents.
Overall, Illinois Tool Works, Inc. is maintaining a strong profitability position with consistent growth in its key profitability ratios, emphasizing its ability to generate substantial returns for its investors and stakeholders.
See also:
Illinois Tool Works Inc Profitability Ratios (Quarterly Data)