Stock Analysis on Net
Stock Analysis on Net

Illinois Tool Works Inc. (NYSE:ITW)

$22.49

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

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Illinois Tool Works Inc., consolidated income statement

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Operating revenue
Cost of revenue
Gross profit
Selling, administrative, and research and development expenses
Legal settlement income
Amortization and impairment of intangible assets
Operating income
Interest expense
Interest income
Other net periodic benefit income
Income from investments
Gain (loss) on disposal of operations and affiliates
Loss on foreign currency transactions, net
Other, net
Other income (expense)
Income before taxes
Income taxes
Net income

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Operating Revenue and Cost of Revenue
The operating revenue exhibited a fluctuating pattern over the five-year period, starting at 14,314 million USD in 2017, peaking at 14,768 million USD in 2018, followed by a decline to 12,574 million USD in 2020, and a recovery to 14,455 million USD in 2021. Cost of revenue followed a similar trend but with decreases in absolute terms in 2020 before increasing again in 2021. This indicates a temporary contraction in business activity around 2020, possibly influenced by external factors.
Gross Profit
Gross profit closely mirrored the trend of operating revenue, starting at 6,005 million USD in 2017, rising marginally to 6,164 million USD in 2018, then declining steadily to 5,199 million USD in 2020 before rebounding to 5,966 million USD in 2021. This suggests that despite fluctuations in revenue and cost structure, the company managed to maintain a relatively stable gross margin through the period, recovering well after the 2020 dip.
Selling, Administrative, and R&D Expenses
These expenses remained fairly consistent across the years, with minor fluctuations between 2,400 million USD and 2,163 million USD. There was a slight reduction in 2020, aligning with the overall decline in revenue, followed by a return to prior levels in 2021, implying the company maintained steady expenditure levels on these functions relative to its scale.
Amortization and Impairment of Intangible Assets
There was a gradual decline in amortization and impairment charges from 206 million USD in 2017 to 133 million USD in 2021, indicating reduced intangible asset write-downs or amortization expenses over the period.
Operating Income
Operating income followed the general revenue and gross profit trend with a peak in 2018 at 3,584 million USD, a decline in 2020 to 2,882 million USD, and recovery in 2021 to 3,477 million USD. This pattern suggests operational profitability was impacted during 2020 but largely restored in the subsequent year.
Interest Expense and Interest Income
Interest expense demonstrated a decreasing trend from 260 million USD in 2017 to 202 million USD in 2021, reflecting potentially lower debt levels or borrowing costs. Interest income also declined progressively from 45 million USD in 2017 to 12 million USD in 2021, indicating reduced interest earnings.
Other Income and Expenses
The category labeled "Other income (expense)" showed notable variability, peaking in 2019 at 107 million USD, while other net periodic benefit income and income from investments fluctuated without a clear trend. Gains and losses related to disposal of operations and foreign currency transactions showed occasional impacts on results, but these were relatively minor in scale.
Income Before Taxes and Income Taxes
Income before taxes followed a trend similar to operating income, fluctuating between 3,270 million USD in 2017 and a low of 2,704 million USD in 2020 before recovering to 3,326 million USD in 2021. Income taxes decreased significantly from 1,583 million USD in 2017 to 632 million USD in 2021, suggesting tax efficiency improvements or changes in the tax environment.
Net Income
Net income reflected strong growth from 1,687 million USD in 2017 to a peak of 2,563 million USD in 2018, then a dip in 2020 to 2,109 million USD, followed by an increase to 2,694 million USD in 2021. This pattern indicates overall profitability improvement despite the 2020 downturn, with effective management of costs and taxes contributing to sustained earnings.