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.

Net Profit Margin
since 2005

Microsoft Excel

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Calculation

Illinois Tool Works Inc., net profit margin, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in millions


Net Income
Net income exhibited a generally upward trend from 2005 to 2021, with fluctuations reflecting varying business conditions. Beginning at 1,495 million US dollars in 2005, income rose steadily until a dip occurred in 2009, falling to 947 million. A notable recovery followed, peaking at 2,870 million in 2012. Subsequent years saw volatility with declines and rebounds, ending at 2,694 million in 2021. The overall trajectory suggests resilience and growth despite intermittent setbacks.
Operating Revenue
Operating revenue increased from 12,922 million US dollars in 2005 to a maximum of 17,924 million in 2012. However, from 2013 onwards, the revenue trend reversed, showing a downward movement with some fluctuations, reaching 14,455 million in 2021. This indicates a peak period around 2011-2012, followed by a reduction in sales or contract volume. The decrease in revenue after 2012 contrasts with the partial recovery and stability seen in net income.
Net Profit Margin
The net profit margin demonstrated variability throughout the period. Initial values hovered around 11-12% until 2007, then experiencing a drop to a low of 6.82% in 2009 during the financial downturn. From 2010 onwards, margins improved significantly, peaking at 20.34% in 2014. Margin levels remained robust in the latter years, consistently above 11%, and reached 18.64% in 2021. This improvement suggests enhanced profitability and operational efficiency despite fluctuating revenues.
Overall Insights
The data reflect a business that faced cyclical changes, including a clear impact from macroeconomic factors around 2008-2009, which affected both profitability and revenue. While operating revenue peaked in 2012 and then declined, net income and profit margins exhibited a stronger recovery and stabilization, indicating better cost management or a shift toward higher-margin activities. The rising profit margins particularly highlight an improvement in profitability independent of sales growth.

Comparison to Competitors

Illinois Tool Works Inc., net profit margin, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Capital Goods)

Illinois Tool Works Inc., net profit margin, long-term trends, comparison to sector (capital goods)

Microsoft Excel

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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Industry (Industrials)

Illinois Tool Works Inc., net profit margin, long-term trends, comparison to industry (industrials)

Microsoft Excel

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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).