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.
Illinois Tool Works Inc., consolidated income statement (quarterly data)
US$ in millions
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 between March 2017 and December 2021 is characterized by overall stability, punctuated by a significant operational contraction in the second quarter of 2020 and a distinct tax-related anomaly in late 2017. Operating revenues generally fluctuated between 3.4 billion and 3.8 billion US dollars, demonstrating a resilient recovery to pre-pandemic levels by the end of 2021.
- Revenue and Gross Profit Trends
- Operating revenue showed a gradual increase from March 2017 through June 2018, peaking at 3.83 billion US dollars. A period of relative stagnation followed through 2019, leading into a sharp decline in June 2020, where revenue dropped to 2.56 billion US dollars. A rapid recovery occurred in the subsequent quarters, with revenue returning to 3.68 billion US dollars by December 2021. Gross profit margins remained consistently strong, typically ranging between 40% and 43%, though a temporary dip occurred during the June 2020 downturn.
- Operating Expense Management
- Selling, administrative, and research and development expenses exhibited remarkable stability, generally oscillating between 560 million and 620 million US dollars. This suggests a fixed-cost structure that is not heavily leveraged to revenue fluctuations. A brief reduction in these expenses was observed during the June 2020 revenue trough, indicating a degree of operational flexibility in response to acute economic shocks.
- Operating Income and Profitability
- Operating income remained largely consistent, typically staying within the 800 million to 900 million US dollar range. The most significant deviation occurred in June 2020, where operating income fell to 449 million US dollars. However, the return to levels exceeding 800 million US dollars by September 2020 demonstrates a strong capacity for operational recovery.
- Net Income and Fiscal Anomalies
- Net income was generally stable, averaging approximately 600 million US dollars per quarter, with two notable exceptions. In December 2017, a substantial increase in income taxes to 872 million US dollars resulted in a net loss of 76 million US dollars for the quarter. A second decline occurred in June 2020, where net income fell to 319 million US dollars due to the aforementioned revenue contraction. Excluding these events, net income trended slightly upward toward the end of 2021.
- Financial Costs and Other Income
- Interest expenses showed a steady downward trend, decreasing from 64 million US dollars in early 2017 to 49 million US dollars by late 2021, suggesting a reduction in debt burden or more favorable financing terms. Other income exhibited volatility, with a significant peak of 58 million US dollars in December 2019, which provided a temporary boost to income before taxes.
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