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
Quarterly Data

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 (quarterly data)

US$ in millions

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
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
Other income (expense)
Income before taxes
Income taxes
Net income

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).


Operating Revenue
The operating revenue demonstrated a generally stable pattern from March 2017 through December 2019, fluctuating mostly between approximately $3,470 million and $3,830 million quarterly. However, a notable decline occurred starting in March 2020, reaching a low of $2,564 million in June 2020, likely reflecting external economic disruptions. Recovery was observed in the subsequent quarters, with revenue rising back to around $3,670 million by December 2021.
Cost of Revenue
The cost of revenue maintained a consistent trend aligned with the revenue changes, mostly ranging between $2,000 million and $2,231 million prior to 2020. It decreased significantly in the second quarter of 2020, hitting approximately $1,594 million, concurrent with the drop in revenue, and then gradually increased again through 2021, reaching about $2,191 million by the end of the year.
Gross Profit
Gross profit mirrored the revenue and cost patterns, generally stable around $1,460 million to $1,600 million pre-2020. A decline was evident in 2020, with a bottom of $970 million in the second quarter. Improvement occurred later, though gross profit remained slightly below the pre-pandemic levels, suggesting some pressure on margins despite the revenue rebound.
Selling, Administrative, and Research and Development Expenses
Expenses fluctuated moderately without a distinct trend up to 2019, oscillating between roughly $560 million and $620 million per quarter. During 2020, these expenses decreased, especially in the second quarter to $486 million, before gradually returning to prior levels. This reduction may indicate cost control measures during revenue downturns.
Legal Settlement Income
A significant anomaly appeared in the second and third quarters of 2017, with legal settlement income reported at $15 million and $80 million respectively, and no amounts recorded afterward. This suggests a temporary non-recurring item impacting income in that period only.
Amortization and Impairment of Intangible Assets
The amortization and impairment expenses showed a slow and steady decline from $53 million in early 2017 to around $33 million by the end of 2021, indicating a reduction in intangible asset charges over time.
Operating Income
Operating income generally exhibited resilience before 2020, mostly maintaining a range between $800 million and $960 million, before dipping sharply to $449 million in the second quarter of 2020, consistent with other financial downturns during that period. Following this trough, operating income recovered steadily, approaching pre-2020 levels near $830 to $900 million by late 2021, indicating effective operational management.
Interest Expense
Interest expense remained relatively stable and low, consistently around $50 million to $66 million across all quarters, with a slight declining trend evident towards 2021, supporting controlled debt costs.
Other Income (Expense)
Other income fluctuated without a clear trend, presenting some spikes such as $58 million in December 2019 and modest positive or negative values in other quarters. This volatility suggests variable non-operational financial activities affecting net income variably.
Income Before Taxes
Income before taxes generally followed operating income patterns, ranging from approximately $735 million to $906 million pre-2020, with a sharp decline to $406 million in the second quarter of 2020. Subsequently, it recovered to levels between $790 million and $865 million by the end of 2021, reflecting the company's resilience in profit generation before tax obligations.
Income Taxes
Income tax expenses showed substantial variability. Despite regular amounts fluctuating between $87 million and $232 million, a considerable spike occurred in the fourth quarter of 2017, with taxes sharply rising to $872 million, which stands as an outlier relative to other periods. The taxes decreased markedly during the downturn in 2020, corresponding with lower taxable income, before fluctuating mildly thereafter.
Net Income
Net income followed the overall earnings trend with generally positive and stable results from 2017 until a significant negative impact in the fourth quarter of 2017, where a net loss of $76 million was recorded despite prior positive quarters. From 2018 through early 2020, net income remained robust, though it dipped to its lowest in the second quarter of 2020 at $319 million during the economic downturn. Recovery was evident in the following quarters, peaking at $775 million in September 2021, followed by some reduction but maintaining healthy profitability through December 2021.