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.

Return on Assets (ROA)
since 2005

Microsoft Excel

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Calculation

Illinois Tool Works Inc., ROA, long-term trends, calculation

Microsoft Excel
ROA = 100 × Net income1 ÷ Total assets1
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Dec 31, 2005 = 100 × ÷

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 Trends
The net income demonstrated considerable fluctuations over the period analyzed. Starting at $1,495 million in 2005, it showed a general upward trend with some volatility. Notably, there was a decline in 2009 to $947 million, likely reflecting broader economic challenges during that time. Following 2009, net income recovered significantly, peaking at $2,946 million in 2014. Although subsequent years exhibited some variability, net income remained relatively strong, ending at $2,694 million in 2021.
Total Assets Trends
Total assets exhibited growth from 2005 to 2013, increasing from $11,446 million to a peak of $19,966 million, indicating expansion and asset accumulation. However, after 2013, total assets declined steadily to approximately $15,068 million in 2019, followed by a modest recovery to $16,077 million in 2021. This downward movement after 2013 may reflect strategic asset divestitures or adjustments in the company’s balance sheet management.
Return on Assets (ROA) Analysis
The Return on Assets (ROA) metric showed variability aligned with trends in net income and total assets. ROA started at 13.06% in 2005, declined to a low of 5.89% in 2009 amid reduced net income and growing assets, and subsequently improved, reflecting more efficient asset utilization. Peak ROA values occurred in 2014 (16.66%) and 2018 (17.24%), signaling periods of strong profitability relative to the asset base. The ROA values remained generally robust above 10% in most years after 2009, ending at 16.76% in 2021.
Overall Insights
The company exhibited resilience through economic cycles, recovering net income and improving profitability after the downturn in 2009. The asset base grew substantially until 2013 but experienced a reduction afterward, which may indicate strategic refocusing or operational efficiency improvements. The ROA trends suggest an increased effectiveness in asset utilization post-2009, with returns improving and stabilizing at high levels in more recent years.

Comparison to Competitors

Illinois Tool Works Inc., ROA, long-term trends, comparison to competitors

Microsoft Excel
Illinois Tool Works Inc. Boeing Co. Caterpillar Inc. Eaton Corp. plc GE Aerospace Honeywell International 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).

Comparison to Sector (Capital Goods)

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

Microsoft Excel
Illinois Tool Works Inc. Capital Goods
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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).

Comparison to Industry (Industrials)

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

Microsoft Excel
Illinois Tool Works Inc. Industrials
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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).