Illinois Tool Works Inc (ITW)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,687,000 | 4,633,000 | 4,281,000 | 4,238,000 | 4,075,000 | 4,074,000 | 3,987,000 | 3,905,000 | 3,831,000 | 3,674,000 | 3,533,000 | 3,495,000 | 3,500,000 | 3,548,000 | 3,489,000 | 3,042,000 | 2,895,000 | 2,839,000 | 2,920,000 | 3,345,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 141.34% | 136.63% | 144.58% | 140.33% | 135.29% | 135.66% | 128.90% | 125.97% | 124.06% | 121.94% | 104.59% | 97.60% | 96.55% | 101.60% | 99.12% | 92.91% | 91.01% | 105.30% | 123.89% | 146.52% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,687,000K ÷ ($—K + $3,316,000K)
= 141.34%
Illinois Tool Works Inc has shown a fluctuating trend in its return on total capital over the past few years. The return on total capital stood at a high of 146.52% as of March 31, 2020, and gradually decreased to 91.01% by December 31, 2020. However, the company managed to improve its return on total capital over the following quarters, reaching 144.58% by June 30, 2024.
The return on total capital peaked at 144.58% in June 30, 2024, indicating that the company efficiently generated returns from both its equity and debt capital. The consistent improvement in return on total capital since December 2020 demonstrates Illinois Tool Works Inc's ability to effectively utilize its capital resources to generate profits for its shareholders.
Overall, the increasing trend in return on total capital suggests that Illinois Tool Works Inc has been able to enhance its operational efficiency and profitability, which is a positive indicator for investors and stakeholders.
Peer comparison
Dec 31, 2024