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Illinois Tool Works Inc. (NYSE:ITW)

This company has been moved to the archive! The financial data has not been updated since February 11, 2022.

Total Asset Turnover
since 2005

Microsoft Excel

Calculation

Illinois Tool Works Inc., total asset turnover, long-term trends, calculation

Microsoft Excel
Total asset turnover = Operating revenue1 ÷ Total assets1
Dec 31, 2021 0.90 = 14,455 ÷ 16,077
Dec 31, 2020 0.81 = 12,574 ÷ 15,612
Dec 31, 2019 0.94 = 14,109 ÷ 15,068
Dec 31, 2018 0.99 = 14,768 ÷ 14,870
Dec 31, 2017 0.85 = 14,314 ÷ 16,780
Dec 31, 2016 0.89 = 13,599 ÷ 15,201
Dec 31, 2015 0.85 = 13,405 ÷ 15,729
Dec 31, 2014 0.82 = 14,484 ÷ 17,678
Dec 31, 2013 0.71 = 14,135 ÷ 19,966
Dec 31, 2012 0.93 = 17,924 ÷ 19,309
Dec 31, 2011 0.99 = 17,787 ÷ 17,984
Dec 31, 2010 0.98 = 15,870 ÷ 16,250
Dec 31, 2009 0.86 = 13,877 ÷ 16,082
Dec 31, 2008 1.04 = 15,869 ÷ 15,213
Dec 31, 2007 1.04 = 16,171 ÷ 15,526
Dec 31, 2006 1.01 = 14,055 ÷ 13,880
Dec 31, 2005 1.13 = 12,922 ÷ 11,446

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 total asset turnover ratio exhibits a general downward trajectory from 2005 through 2021, indicating a decline in the efficiency with which assets are utilized to generate operating revenue. While the ratio began the period at its peak of 1.13 in 2005, it spent the majority of the subsequent decade oscillating below the 1.0 threshold.

Asset Utilization Trends
A period of relatively high efficiency was observed between 2005 and 2008, where the turnover ratio remained above 1.0. However, a significant contraction occurred in 2009, with the ratio dropping to 0.86, coinciding with a decrease in operating revenue. Although a partial recovery followed, the ratio failed to return to its early-period highs.
Correlation Between Asset Growth and Revenue
The most pronounced decline in asset turnover occurred in 2013, reaching a period low of 0.71. This was driven by a divergence where total assets reached a peak of 19,966 million US dollars while operating revenue simultaneously experienced a sharp decline to 14,135 million US dollars. This indicates a period where the asset base expanded beyond the revenue-generating capacity of the operations.
Recovery and Stabilization Phase
Following the 2013 low, the turnover ratio showed a steady recovery, climbing back to 0.99 by 2018. This improvement was supported by a reduction in total assets, which declined from the 2013 peak to 14,870 million US dollars by 2018, alongside stabilizing revenue. This suggests a successful effort to lean the asset base to better align with current revenue levels.
Recent Performance Volatility
Between 2019 and 2021, the ratio experienced further fluctuation, dipping to 0.81 in 2020 before recovering to 0.90 in 2021. These movements mirror the volatility in operating revenue during this window, while total assets remained relatively stable between 15,000 and 16,000 million US dollars.

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Comparison to Competitors

Illinois Tool Works Inc., total asset turnover, 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.
Dec 31, 2021 0.90 0.45 0.58 0.58 0.36 0.53 1.32 0.40
Dec 31, 2020 0.81 0.38 0.50 0.56 0.29 0.51 1.29 0.35
Dec 31, 2019 0.94 0.57 0.65 0.65 0.33 0.63 1.26 0.55
Dec 31, 2018 0.99 0.86 0.66 0.70 0.37 0.72 1.20 0.50
Dec 31, 2017 0.85 1.01 0.55 0.63 0.30 0.68 1.10 0.62
Dec 31, 2016 0.89 1.05 0.48 0.65 0.30 0.73 0.99 0.64
Dec 31, 2015 0.85 1.02 0.56 0.67 0.21 0.78 0.94 0.64
Dec 31, 2014 0.82 0.91 0.62 0.67 0.16 0.89 1.23 0.71
Dec 31, 2013 0.71 0.93 0.62 0.62 0.15 0.86 1.25 0.69
Dec 31, 2012 0.93 0.92 0.71 0.46 0.15 0.90 1.22 0.65
Dec 31, 2011 0.99 0.86 0.70 0.90 0.13 0.92 1.23 0.95
Dec 31, 2010 0.98 0.94 0.62 0.79 0.13 0.88 1.31 0.93
Dec 31, 2009 0.86 1.10 0.49 0.73 0.13 0.86 1.29 0.94
Dec 31, 2008 1.04 1.13 0.71 0.92 0.14 1.03 1.28 1.03
Dec 31, 2007 1.04 1.13 0.75 0.97 0.13 1.02 1.45 0.99
Dec 31, 2006 1.01 1.19 0.76 1.08 0.14 1.01 1.40 1.00
Dec 31, 2005 1.13 0.91 0.72 1.09 0.14 0.86 1.34 0.92

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., total asset turnover, long-term trends, comparison to sector (capital goods)

Microsoft Excel
Illinois Tool Works Inc. Capital Goods
Dec 31, 2021 0.90 0.50
Dec 31, 2020 0.81 0.43
Dec 31, 2019 0.94 0.54
Dec 31, 2018 0.99 0.58
Dec 31, 2017 0.85 0.54
Dec 31, 2016 0.89 0.54
Dec 31, 2015 0.85 0.46
Dec 31, 2014 0.82 0.41
Dec 31, 2013 0.71 0.39
Dec 31, 2012 0.93 0.38
Dec 31, 2011 0.99 0.36
Dec 31, 2010 0.98 0.34
Dec 31, 2009 0.86 0.33
Dec 31, 2008 1.04 0.35
Dec 31, 2007 1.04 0.34
Dec 31, 2006 1.01 0.36
Dec 31, 2005 1.13 0.33

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., total asset turnover, long-term trends, comparison to industry (industrials)

Microsoft Excel
Illinois Tool Works Inc. Industrials
Dec 31, 2021 0.90 0.58
Dec 31, 2020 0.81 0.50
Dec 31, 2019 0.94 0.62
Dec 31, 2018 0.99 0.67
Dec 31, 2017 0.85 0.62
Dec 31, 2016 0.89 0.61
Dec 31, 2015 0.85 0.54
Dec 31, 2014 0.82 0.49
Dec 31, 2013 0.71 0.47
Dec 31, 2012 0.93 0.46
Dec 31, 2011 0.99 0.45
Dec 31, 2010 0.98 0.41
Dec 31, 2009 0.86 0.39
Dec 31, 2008 1.04 0.43
Dec 31, 2007 1.04 0.41
Dec 31, 2006 1.01 0.43
Dec 31, 2005 1.13 0.40

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).