Illinois Tool Works Inc (ITW)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,488,000 | 2,957,000 | 3,034,000 | 2,694,000 | 2,109,000 |
| Total assets | US$ in thousands | 13,692,000 | 15,518,000 | 15,422,000 | 16,077,000 | 15,612,000 |
| ROA | 25.47% | 19.06% | 19.67% | 16.76% | 13.51% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $3,488,000K ÷ $13,692,000K
= 25.47%
Illinois Tool Works Inc's return on assets (ROA) has been showing a positive trend over the past five years. Starting at 13.51% in December 2020, the ROA increased steadily to reach 25.47% by December 2024. This improvement indicates that the company has been effectively utilizing its assets to generate profits. A rising ROA demonstrates efficient asset management and operational performance, suggesting that Illinois Tool Works Inc is becoming more effective in generating profits relative to the size of its asset base. The company's increasing ROA reflects positively on its overall financial health and efficiency in utilizing its resources.
Peer comparison
Dec 31, 2024