Illinois Tool Works Inc (ITW)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,316,000 | 3,391,000 | 2,961,000 | 3,020,000 | 3,012,000 | 3,003,000 | 3,093,000 | 3,100,000 | 3,088,000 | 3,013,000 | 3,378,000 | 3,581,000 | 3,625,000 | 3,492,000 | 3,520,000 | 3,274,000 | 3,181,000 | 2,696,000 | 2,357,000 | 2,283,000 |
| 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $3,488,000K ÷ $3,316,000K
= 105.19%
Illinois Tool Works Inc's return on equity (ROE) has shown varying trends over the past few years, reflecting changes in the company's profitability and efficiency in generating returns for its shareholders.
The ROE was exceptionally high at 109.07% as of March 31, 2020, indicating that the company was efficiently utilizing its equity to generate profit. However, the ROE declined over the subsequent quarters, reaching a low of 66.30% by December 31, 2020, possibly due to changes in the company's financial performance or capital structure.
From March 31, 2021, the ROE began to show a gradual increase, reaching 105.19% by December 31, 2024. This upward trend suggests improvements in the company's profitability and efficiency in utilizing shareholder equity to generate earnings.
Overall, Illinois Tool Works Inc's ROE performance demonstrates fluctuations but generally indicates a strong ability to generate profits relative to shareholder equity. Further analysis of the company's financial statements and operating performance would provide deeper insights into the factors driving these ROE fluctuations.
Peer comparison
Dec 31, 2024
See also:
Illinois Tool Works Inc Return on Equity (ROE) (Quarterly Data)