Illinois Tool Works Inc (ITW)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	3,488,000	3,455,000	3,067,000	3,062,000	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
Total assets	US$ in thousands	15,067,000	15,824,000	15,577,000	15,653,000	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
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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $3,488,000K ÷ $15,067,000K
= 23.15%

Illinois Tool Works Inc has shown a generally positive trend in its return on assets (ROA) over the period from March 31, 2020, to December 31, 2024. The ROA started at 17.60% in March 2020, decreased to 13.51% by December 2020, and then began to improve steadily.

From March 2021 to September 2021, the ROA increased from 14.14% to 17.57%, indicating improved efficiency in generating profits relative to its assets. The trend continued to be positive, with the ROA reaching 23.15% by December 31, 2024, which signifies the company's ability to better utilize its assets to generate higher returns for its shareholders.

Overall, the increasing trend in ROA reflects positively on Illinois Tool Works Inc's operational efficiency and management's ability to generate profits from its assets. It suggests that the company is effectively utilizing its resources to drive profitability and create value for its stakeholders.