Net Profit Margin
since 2005
Calculation
Illinois Tool Works Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income1 | ÷ | Operating revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 18.64% | = | 100 | × | 2,694) | ÷ | 14,455) |
| Dec 31, 2020 | 16.77% | = | 100 | × | 2,109) | ÷ | 12,574) |
| Dec 31, 2019 | 17.87% | = | 100 | × | 2,521) | ÷ | 14,109) |
| Dec 31, 2018 | 17.36% | = | 100 | × | 2,563) | ÷ | 14,768) |
| Dec 31, 2017 | 11.79% | = | 100 | × | 1,687) | ÷ | 14,314) |
| Dec 31, 2016 | 14.96% | = | 100 | × | 2,035) | ÷ | 13,599) |
| Dec 31, 2015 | 14.17% | = | 100 | × | 1,899) | ÷ | 13,405) |
| Dec 31, 2014 | 20.34% | = | 100 | × | 2,946) | ÷ | 14,484) |
| Dec 31, 2013 | 11.88% | = | 100 | × | 1,679) | ÷ | 14,135) |
| Dec 31, 2012 | 16.01% | = | 100 | × | 2,870) | ÷ | 17,924) |
| Dec 31, 2011 | 11.65% | = | 100 | × | 2,071) | ÷ | 17,787) |
| Dec 31, 2010 | 9.62% | = | 100 | × | 1,527) | ÷ | 15,870) |
| Dec 31, 2009 | 6.82% | = | 100 | × | 947) | ÷ | 13,877) |
| Dec 31, 2008 | 9.57% | = | 100 | × | 1,519) | ÷ | 15,869) |
| Dec 31, 2007 | 11.56% | = | 100 | × | 1,870) | ÷ | 16,171) |
| Dec 31, 2006 | 12.22% | = | 100 | × | 1,718) | ÷ | 14,055) |
| Dec 31, 2005 | 11.57% | = | 100 | × | 1,495) | ÷ | 12,922) |
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
The analysis of net profit margins from 2005 to 2021 reveals a long-term upward trajectory in profitability, despite significant volatility during the first decade of the period. The net profit margin evolved from a baseline of approximately 11% to 12% in the mid-2000s to a more robust range of 16% to 18% by the end of the period.
- Economic Downturn and Recovery (2005–2012)
- Profitability remained relatively stable between 11.56% and 12.22% from 2005 to 2007. A sharp contraction occurred during the 2008-2009 period, with the net profit margin falling to a period low of 6.82% in 2009. This decline coincided with a reduction in both operating revenue and net income. A steady recovery followed, with margins returning to pre-crisis levels by 2011 and climbing further to 16.01% by 2012.
- Peak Volatility and Adjustment (2013–2017)
- The period between 2013 and 2017 was characterized by significant fluctuations. After a dip to 11.88% in 2013, the net profit margin surged to a peak of 20.34% in 2014. This peak was followed by a gradual correction, with the margin descending to 14.17% in 2015 and reaching 11.79% by 2017.
- Sustained Margin Expansion (2018–2021)
- Beginning in 2018, a higher plateau of profitability was established. Net profit margins remained consistently elevated, ranging from 16.77% to 18.64%. This stability suggests a fundamental shift in the cost structure or pricing capability, as the margins in the final four years of the analysis remained significantly higher than the average observed between 2005 and 2011.
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Comparison to Competitors
Illinois Tool Works Inc., net profit margin, long-term trends, comparison to competitors
| Illinois Tool Works Inc. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 18.64% | -6.75% | 13.47% | 10.92% | -9.17% | 16.11% | 9.42% | 6.00% |
| Dec 31, 2020 | 16.77% | -20.42% | 7.68% | 7.90% | 7.81% | 14.64% | 10.45% | -6.22% |
| Dec 31, 2019 | 17.87% | -0.83% | 12.00% | 10.34% | -5.69% | 16.73% | 10.42% | 7.19% |
| Dec 31, 2018 | 17.36% | 10.34% | 11.86% | 9.93% | -19.69% | 16.18% | 9.39% | 7.92% |
| Dec 31, 2017 | 11.79% | 8.78% | 1.77% | 14.63% | -5.11% | 4.08% | 3.92% | 7.61% |
| Dec 31, 2016 | 14.96% | 5.18% | -0.19% | 9.73% | 8.00% | 12.24% | 11.22% | 8.83% |
| Dec 31, 2015 | 14.17% | 5.39% | 4.76% | 9.49% | -5.79% | 12.36% | 7.81% | 13.56% |
| Dec 31, 2014 | 20.34% | 6.00% | 7.09% | 7.95% | 14.27% | 10.52% | 7.93% | 9.55% |
| Dec 31, 2013 | 11.88% | 5.29% | 7.19% | 8.44% | 12.99% | 10.05% | 6.57% | 9.14% |
| Dec 31, 2012 | 16.01% | 4.77% | 9.01% | 7.46% | 13.62% | 7.77% | 5.82% | 8.89% |
| Dec 31, 2011 | 11.65% | 5.85% | 8.59% | 8.41% | 14.97% | 5.66% | 5.71% | 8.56% |
| Dec 31, 2010 | 9.62% | 5.14% | 6.77% | 6.77% | 11.59% | 6.06% | 6.39% | 8.05% |
| Dec 31, 2009 | 6.82% | 1.92% | 3.03% | 3.23% | 10.62% | 6.97% | 6.69% | 7.30% |
| Dec 31, 2008 | 9.57% | 4.39% | 7.40% | 6.88% | 15.44% | 7.64% | 7.53% | 8.08% |
| Dec 31, 2007 | 11.56% | 6.14% | 8.44% | 7.63% | 22.31% | 7.07% | 7.25% | 7.83% |
| Dec 31, 2006 | 12.22% | 3.60% | 9.10% | 7.68% | 20.68% | 6.64% | 6.38% | 7.92% |
| Dec 31, 2005 | 11.57% | 4.69% | 8.39% | 7.24% | 17.66% | 5.98% | 4.90% | 7.26% |
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)
| Illinois Tool Works Inc. | Capital Goods | |
|---|---|---|
| Dec 31, 2021 | 18.64% | 3.71% |
| Dec 31, 2020 | 16.77% | 1.85% |
| Dec 31, 2019 | 17.87% | 5.03% |
| Dec 31, 2018 | 17.36% | 2.99% |
| Dec 31, 2017 | 11.79% | 3.41% |
| Dec 31, 2016 | 14.96% | 7.61% |
| Dec 31, 2015 | 14.17% | 4.69% |
| Dec 31, 2014 | 20.34% | 9.51% |
| Dec 31, 2013 | 11.88% | 8.78% |
| Dec 31, 2012 | 16.01% | 8.73% |
| Dec 31, 2011 | 11.65% | 9.04% |
| Dec 31, 2010 | 9.62% | 7.93% |
| Dec 31, 2009 | 6.82% | 6.61% |
| Dec 31, 2008 | 9.57% | 9.45% |
| Dec 31, 2007 | 11.56% | 11.53% |
| Dec 31, 2006 | 12.22% | 10.82% |
| Dec 31, 2005 | 11.57% | 9.72% |
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)
| Illinois Tool Works Inc. | Industrials | |
|---|---|---|
| Dec 31, 2021 | 18.64% | 5.85% |
| Dec 31, 2020 | 16.77% | 0.09% |
| Dec 31, 2019 | 17.87% | 4.11% |
| Dec 31, 2018 | 17.36% | 4.75% |
| Dec 31, 2017 | 11.79% | 5.79% |
| Dec 31, 2016 | 14.96% | 7.43% |
| Dec 31, 2015 | 14.17% | 6.48% |
| Dec 31, 2014 | 20.34% | 8.76% |
| Dec 31, 2013 | 11.88% | 8.23% |
| Dec 31, 2012 | 16.01% | 7.39% |
| Dec 31, 2011 | 11.65% | 8.26% |
| Dec 31, 2010 | 9.62% | 7.48% |
| Dec 31, 2009 | 6.82% | 5.76% |
| Dec 31, 2008 | 9.57% | 7.27% |
| Dec 31, 2007 | 11.56% | 9.56% |
| Dec 31, 2006 | 12.22% | 14.87% |
| Dec 31, 2005 | 11.57% | 3.55% |
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).