Operating Profit Margin
since 2005
Calculation
Illinois Tool Works Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Operating revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 24.05% | = | 100 | × | 3,477) | ÷ | 14,455) |
| Dec 31, 2020 | 22.92% | = | 100 | × | 2,882) | ÷ | 12,574) |
| Dec 31, 2019 | 24.11% | = | 100 | × | 3,402) | ÷ | 14,109) |
| Dec 31, 2018 | 24.27% | = | 100 | × | 3,584) | ÷ | 14,768) |
| Dec 31, 2017 | 24.41% | = | 100 | × | 3,494) | ÷ | 14,314) |
| Dec 31, 2016 | 22.53% | = | 100 | × | 3,064) | ÷ | 13,599) |
| Dec 31, 2015 | 21.39% | = | 100 | × | 2,867) | ÷ | 13,405) |
| Dec 31, 2014 | 19.94% | = | 100 | × | 2,888) | ÷ | 14,484) |
| Dec 31, 2013 | 17.79% | = | 100 | × | 2,514) | ÷ | 14,135) |
| Dec 31, 2012 | 15.88% | = | 100 | × | 2,847) | ÷ | 17,924) |
| Dec 31, 2011 | 15.35% | = | 100 | × | 2,731) | ÷ | 17,787) |
| Dec 31, 2010 | 14.85% | = | 100 | × | 2,357) | ÷ | 15,870) |
| Dec 31, 2009 | 9.99% | = | 100 | × | 1,386) | ÷ | 13,877) |
| Dec 31, 2008 | 14.73% | = | 100 | × | 2,338) | ÷ | 15,869) |
| Dec 31, 2007 | 16.23% | = | 100 | × | 2,624) | ÷ | 16,171) |
| Dec 31, 2006 | 17.22% | = | 100 | × | 2,421) | ÷ | 14,055) |
| Dec 31, 2005 | 17.48% | = | 100 | × | 2,259) | ÷ | 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 operating profit margin exhibited a cyclical trajectory characterized by a significant contraction during the late 2000s, followed by a prolonged period of expansion and eventual stabilization at a higher baseline through 2021.
- Margin Contraction and Trough (2005–2009)
- A steady decline in profitability is observed from 2005 to 2008, with margins receding from 17.48% to 14.73%. This downward trend accelerated sharply in 2009, resulting in a period low of 9.99%. This trough corresponds with the lowest recorded levels of both operating income and operating revenue within the analyzed timeframe.
- Operational Recovery and Expansion (2010–2017)
- A consistent and robust recovery phase began in 2010, marked by an uninterrupted increase in the operating profit margin for eight consecutive years. The margin rose from 14.85% in 2010 to a peak of 24.41% in 2017. A notable divergence is observed between 2012 and 2015, where operating margins continued to climb despite a decline in total operating revenue, suggesting significant improvements in operational efficiency or a strategic shift toward higher-margin product mixes.
- Stabilization and Recent Performance (2018–2021)
- Following the 2017 peak, operating margins entered a phase of relative stability, maintaining a range between approximately 23% and 24%. A brief contraction to 22.92% occurred in 2020, aligning with a temporary decrease in operating revenue and income. However, a recovery was realized in 2021, with the margin returning to 24.05%, effectively sustaining the elevated profitability levels established in the preceding years.
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Comparison to Competitors
Illinois Tool Works Inc., operating profit margin, long-term trends, comparison to competitors
| Illinois Tool Works Inc. | Boeing Co. | Caterpillar Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 24.05% | -4.66% | 14.27% | 13.61% | 7.70% |
| Dec 31, 2020 | 22.92% | -21.95% | 11.67% | 13.22% | -3.34% |
| Dec 31, 2019 | 24.11% | -2.58% | 16.33% | 14.29% | 11.64% |
| Dec 31, 2018 | 24.27% | 11.85% | 16.00% | 13.64% | 12.86% |
| Dec 31, 2017 | 24.41% | 11.01% | 10.32% | 11.60% | 14.49% |
| Dec 31, 2016 | 22.53% | 6.17% | 1.39% | 11.74% | 14.28% |
| Dec 31, 2015 | 21.39% | 7.74% | 7.38% | 11.78% | 13.00% |
| Dec 31, 2014 | 19.94% | 8.23% | 10.22% | 12.26% | 15.01% |
| Dec 31, 2013 | 17.79% | 7.58% | 10.68% | 9.93% | 14.70% |
| Dec 31, 2012 | 15.88% | 7.72% | 13.59% | 9.40% | 13.32% |
| Dec 31, 2011 | 15.35% | 8.50% | 12.46% | 8.56% | 13.92% |
| Dec 31, 2010 | 14.85% | 7.73% | 9.94% | 8.94% | 13.23% |
| Dec 31, 2009 | 9.99% | 3.07% | 1.95% | 9.88% | 12.33% |
| Dec 31, 2008 | 14.73% | 6.49% | 9.26% | 12.01% | 13.14% |
| Dec 31, 2007 | 16.23% | 8.78% | 11.73% | 10.81% | 13.08% |
| Dec 31, 2006 | 17.22% | 4.90% | 12.66% | 9.98% | 12.94% |
| Dec 31, 2005 | 17.48% | 5.13% | 11.13% | 8.02% | 12.26% |
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).