Stock Analysis on Net
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.

Operating Profit Margin
since 2005

Microsoft Excel

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Calculation

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

Microsoft Excel
Operating profit margin = 100 × Operating income1 ÷ Operating revenue1
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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

Operating Revenue
The operating revenue exhibited an overall upward trend from 2005 through 2012, increasing from 12,922 million US dollars in 2005 to a peak of 17,924 million US dollars in 2012. Following this peak, revenues declined substantially in 2013 and remained relatively lower and fluctuating through 2020, with a trough at 12,574 million US dollars in 2020. A moderate recovery was observed in 2021, where operating revenue increased to 14,455 million US dollars.
Operating Income
Operating income mirrored some of the patterns seen in revenue but displayed more volatility. It increased from 2,259 million US dollars in 2005 to a high of 2,847 million in 2012. A significant drop occurred in 2009 to 1,386 million, which appears to be an anomaly likely influenced by external factors. From 2012 onward, operating income fluctuated, peaking at 3,584 million in 2018 before declining sharply again in 2020 to 2,882 million. In 2021, operating income rose to 3,477 million US dollars.
Operating Profit Margin
The operating profit margin showed a general improvement over the period under review. From 17.48% in 2005, the margin declined to a low of 9.99% in 2009, aligning with the revenue and income drop in that year. After 2009, there was a consistent upward trajectory, reaching over 24% in multiple years starting from 2017 through 2021. This suggests improved operational efficiency or cost control despite some fluctuations in revenue and income figures.
Overall Insights
There appears to be a cyclical pattern in revenues and operating income, with notable downturns in 2009 and again around 2020, potentially reflective of broader economic conditions impacting the company. Despite these revenue fluctuations, the steady increase in operating profit margins from 2009 onward indicates enhanced profitability management. The disparity between revenue and income trends during some years suggests successful efforts in controlling costs or improving operational productivity, sustaining profitability even when revenue was not growing.

Comparison to Competitors

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

Microsoft Excel
Illinois Tool Works Inc. Boeing Co. Caterpillar Inc. Lockheed Martin Corp. RTX Corp.
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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).