Illinois Tool Works Inc (ITW)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 44.13% | 43.73% | 43.41% | 43.22% | 42.16% | 42.14% | 41.74% | 41.21% | 40.82% | 40.47% | 40.49% | 40.69% | 41.27% | 41.77% | 42.07% | 41.48% | 41.35% | 41.14% | 41.18% | 41.97% |
| Operating profit margin | 26.82% | 26.47% | 26.47% | 26.12% | 25.08% | 25.09% | 24.58% | 24.15% | 23.79% | 23.26% | 23.05% | 23.35% | 24.05% | 24.74% | 24.78% | 23.48% | 22.92% | 22.46% | 22.78% | 24.11% |
| Pretax margin | 27.81% | 27.37% | 25.08% | 24.74% | 23.74% | 24.96% | 24.64% | 24.38% | 24.11% | 22.46% | 22.14% | 22.37% | 23.01% | 23.56% | 23.50% | 21.99% | 21.50% | 21.57% | 22.09% | 23.45% |
| Net profit margin | 21.94% | 21.66% | 19.15% | 19.06% | 18.36% | 19.55% | 19.30% | 19.27% | 19.04% | 17.49% | 17.44% | 18.08% | 18.64% | 19.14% | 19.07% | 17.18% | 16.77% | 16.77% | 17.16% | 18.06% |
Illinois Tool Works Inc has shown strong profitability over the years, as indicated by its various profitability ratios. The gross profit margin has been relatively stable around the mid-40% range, showing consistency in generating profits from sales after deducting the cost of goods sold.
The operating profit margin has also demonstrated consistency, gradually increasing from around 22% in early 2020 to over 26% by the end of 2024. This indicates the company's ability to control its operating expenses and improve efficiency in generating operating profits.
The pretax margin reflects the company's profitability before accounting for taxes, showing a similar increasing trend over the years. Illinois Tool Works Inc has managed to enhance its pretax profitability from the low 20% range in 2020 to over 27% by the end of 2024.
The net profit margin, which represents the company's bottom line profitability after all expenses, has also been on an upward trajectory. Starting from around 16-18% in 2020, the net profit margin has improved to over 21% by the end of 2024, reflecting the company's ability to efficiently manage its costs and increase profitability for its shareholders.
Overall, Illinois Tool Works Inc's profitability ratios demonstrate a strong financial performance and consistent growth in profitability over the years, showcasing effective cost management and operational efficiency.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 23.15% | 21.83% | 19.69% | 19.56% | 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% |
| Return on total capital | 141.34% | 136.63% | 144.58% | 140.33% | 135.29% | 135.66% | 128.90% | 125.97% | 124.06% | 121.94% | 104.59% | 97.60% | 96.55% | 101.60% | 99.12% | 92.91% | 91.01% | 105.30% | 123.89% | 146.52% |
| Return on equity (ROE) | 105.19% | 101.89% | 103.58% | 101.39% | 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% |
Illinois Tool Works Inc has shown a consistent and strong performance in terms of profitability ratios over the past few years. The Operating Return on Assets (Operating ROA) has steadily improved from 23.49% in March 2020 to 28.30% in December 2024, indicating the company's efficient utilization of its assets to generate operating profits.
Similarly, the Return on Assets (ROA) has shown a positive trend, increasing from 17.60% in March 2020 to 23.15% in December 2024. This ratio reflects the company's ability to generate profits from its total assets.
The Return on Total Capital has exhibited a growth trajectory, rising from 146.52% in March 2020 to 141.34% in December 2024. This ratio signifies the company's efficiency in generating profits relative to its total capital employed.
Moreover, the Return on Equity (ROE) has also shown an upward trend, increasing from 109.07% in March 2020 to 105.19% in December 2024. This ratio demonstrates the company's ability to generate profits for its shareholders based on their equity investments.
Overall, Illinois Tool Works Inc's profitability ratios indicate a strong financial performance and efficient management of assets and capital, reflecting positively on the company's operational efficiency and profitability growth over the analyzed period.
See also:
Illinois Tool Works Inc Profitability Ratios (Quarterly Data)