Illinois Tool Works Inc (ITW)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	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	3,026,000	2,966,000	3,091,000	3,196,000
ROE		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%	83.31%	83.85%	79.75%	78.47%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $2,957,000K ÷ $3,012,000K
= 98.17%

Illinois Tool Works, Inc.'s return on equity (ROE) has shown a consistently increasing trend over the past eight quarters, indicating effective utilization of shareholders' equity to generate profit.

The ROE has improved from 78.39% in Q2 2022 to 104.80% in Q3 2023, reaching a peak in the most recent quarter. This signifies strong financial performance and efficient management of the company's assets to generate higher returns for shareholders.

Overall, Illinois Tool Works, Inc. has demonstrated a robust ROE performance, showcasing the company's ability to generate profit relative to the amount of equity invested by shareholders. This consistent upward trend in ROE indicates a strong financial position and efficient operational management within the company.