Stock Analysis on Net
AI Tokens
Stock Analysis on Net

Illinois Tool Works Inc. (NYSE:ITW)

This company has been moved to the archive! The financial data has not been updated since February 11, 2022.

Common-Size Income Statement
Quarterly Data

Illinois Tool Works Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: 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 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Operating revenue 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of revenue -59.55 -58.94 -58.84 -57.53 -57.55 -57.76 -62.17 -57.96 -58.29 -57.69 -58.16 -57.97 -58.55 -58.01 -58.24 -58.25 -58.53 -57.93 -57.99 -57.74
Gross profit 40.45% 41.06% 41.16% 42.47% 42.45% 42.24% 37.83% 42.04% 41.71% 42.31% 41.84% 42.03% 41.45% 41.99% 41.76% 41.75% 41.47% 42.07% 42.01% 42.26%
Selling, administrative, and research and development expenses -16.88 -16.34 -16.00 -15.97 -16.03 -16.93 -18.95 -17.35 -16.89 -16.27 -16.57 -17.20 -16.15 -16.08 -16.18 -16.35 -16.67 -16.29 -16.70 -17.43
Legal settlement income 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.21 0.42 0.00
Amortization and impairment of intangible assets -0.90 -0.96 -0.87 -0.96 -1.01 -1.45 -1.37 -1.12 -1.07 -1.09 -1.14 -1.21 -1.28 -1.30 -1.25 -1.28 -1.38 -1.41 -1.44 -1.53
Operating income 22.67% 23.76% 24.29% 25.54% 25.41% 23.86% 17.51% 23.57% 23.75% 24.95% 24.13% 23.62% 24.02% 24.61% 24.33% 24.12% 23.42% 26.58% 24.28% 23.31%
Interest expense -1.33 -1.38 -1.41 -1.47 -1.50 -1.57 -1.99 -1.58 -1.47 -1.49 -1.52 -1.77 -1.76 -1.77 -1.67 -1.76 -1.82 -1.80 -1.81 -1.84
Other income (expense) 0.19 0.28 0.60 0.34 -0.20 0.06 0.31 0.77 1.67 0.75 0.25 0.39 0.53 0.28 0.68 0.32 0.33 0.28 0.28 0.12
Income before taxes 21.53% 22.67% 23.48% 24.41% 23.71% 22.35% 15.83% 22.77% 23.96% 24.20% 22.86% 22.24% 22.79% 23.11% 23.34% 22.68% 21.93% 25.06% 22.76% 21.58%
Income taxes -4.97 -4.70 -2.39 -5.47 -5.24 -4.75 -3.39 -5.24 -5.48 -5.23 -5.60 -5.43 -5.84 -5.45 -5.95 -5.26 -24.03 -7.36 -6.45 -6.14
Net income 16.55% 17.97% 21.08% 18.93% 18.47% 17.60% 12.44% 17.53% 18.48% 18.97% 17.26% 16.81% 16.96% 17.66% 17.38% 17.41% -2.09% 17.70% 16.31% 15.44%

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The financial performance over the analyzed period demonstrates a high degree of structural stability in operating margins, punctuated by specific quarterly anomalies related to macroeconomic shocks and tax adjustments. Operational efficiency remained consistent, with the company maintaining a strong ability to convert revenue into operating profit across most quarters.

Gross Profit and Cost Management
Gross profit margins remained remarkably stable, typically fluctuating between 40.45% and 42.47%. A significant deviation occurred on June 30, 2020, where the cost of revenue spiked to 62.17%, resulting in a temporary contraction of the gross profit margin to 37.83%. Outside of this event, the cost of revenue consistently hovered around 58%, indicating a disciplined approach to direct cost management.
Operating Expense and Efficiency
Selling, administrative, and research and development expenses showed a steady trend, generally ranging from 16% to 17% of operating revenue. A peak in these expenses was observed in June 2020 at 18.95%, coinciding with the period of lowest gross profit. Despite this, operating income remained robust, typically staying between 23% and 25%, suggesting a scalable cost structure that preserves profitability even during revenue volatility.
Financial Costs and Non-Operating Items
Interest expense as a percentage of operating revenue exhibited a gradual downward trend, decreasing from 1.84% in March 2017 to 1.33% by December 2021. This contraction suggests either a reduction in debt levels relative to revenue or more favorable financing terms over time. Other income and expenses remained marginal, typically contributing less than 1% to the overall revenue mix.
Net Income and Tax Volatility
Net income margins were generally strong, often exceeding 17%. However, significant volatility was introduced by tax effects. A notable anomaly occurred on December 31, 2017, where income taxes reached 24.03% of operating revenue, resulting in a negative net income margin of -2.09% despite healthy operating results. Conversely, a peak net income margin of 21.08% was achieved on June 30, 2021, driven by a substantial reduction in the effective tax rate to 2.39% of revenue.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?