Illinois Tool Works Inc (ITW)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	2,957,000	3,147,000	3,102,000	3,086,000	3,034,000	2,736,000	2,648,000	2,685,000	2,694,000	2,727,000	2,670,000	2,214,000	2,109,000	2,108,000	2,186,000	2,490,000	2,521,000	2,487,000	2,465,000	2,508,000
Total assets	US$ in thousands	15,518,000	15,395,000	15,652,000	15,921,000	15,422,000	15,226,000	15,666,000	16,286,000	16,077,000	15,517,000	15,580,000	15,663,000	15,612,000	14,940,000	14,263,000	14,149,000	15,068,000	14,960,000	15,187,000	15,326,000
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%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $2,957,000K ÷ $15,518,000K
= 19.06%

Illinois Tool Works, Inc. has demonstrated consistent and strong return on assets (ROA) performance over the past eight quarters. The ROA ranged from 16.49% to 20.44%, showing a generally increasing trend during this period. This indicates that the company has been effective in generating profits relative to its total assets. The highest ROA of 20.44% in Q3 2023 suggests that the company efficiently utilized its assets to generate earnings during that quarter. Overall, the upward trend in ROA reflects the company's ability to effectively manage its assets and generate profit, which is a positive indicator of its financial performance.