Stock Analysis on Net

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.

Analysis of Long-term (Investment) Activity Ratios 

Microsoft Excel

Long-term Activity Ratios (Summary)

Illinois Tool Works Inc., long-term (investment) activity ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net fixed asset turnover 7.99 7.08 8.16 8.25 8.05
Net fixed asset turnover (including operating lease, right-of-use asset) 7.12 6.31 7.29 8.25 8.05
Total asset turnover 0.90 0.81 0.94 0.99 0.85
Equity turnover 3.99 3.95 4.66 4.54 3.12

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).

Long-term activity ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. Illinois Tool Works Inc. net fixed asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Net fixed asset turnover (including operating lease, right-of-use asset) An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). Illinois Tool Works Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Illinois Tool Works Inc. total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. Illinois Tool Works Inc. equity turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Net Fixed Asset Turnover

Illinois Tool Works Inc., net fixed asset turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Operating revenue 14,455  12,574  14,109  14,768  14,314 
Net plant and equipment 1,809  1,777  1,729  1,791  1,778 
Long-term Activity Ratio
Net fixed asset turnover1 7.99 7.08 8.16 8.25 8.05
Benchmarks
Net Fixed Asset Turnover, Competitors2
Boeing Co. 5.70 4.92 6.12 8.00 7.37
Caterpillar Inc. 3.99 3.15 3.93 3.82 3.01
General Electric Co. 5.47 1.75 2.02 2.24 2.10
Honeywell International Inc. 6.18 5.86 6.89 7.89 6.84
Lockheed Martin Corp. 8.83 9.07 9.07 8.78 8.84
Raytheon Technologies Corp. 4.30 3.78 6.04 5.41 5.87
Net Fixed Asset Turnover, Sector
Capital Goods 5.42 3.47 4.16 4.26 3.91
Net Fixed Asset Turnover, Industry
Industrials 2.08 1.66 2.08 2.21 2.12

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).

1 2021 Calculation
Net fixed asset turnover = Operating revenue ÷ Net plant and equipment
= 14,455 ÷ 1,809 = 7.99

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. Illinois Tool Works Inc. net fixed asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)

Illinois Tool Works Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Operating revenue 14,455  12,574  14,109  14,768  14,314 
 
Net plant and equipment 1,809  1,777  1,729  1,791  1,778 
Operating lease right-of-use assets 222  216  206  —  — 
Net plant and equipment (including operating lease, right-of-use asset) 2,031  1,993  1,935  1,791  1,778 
Long-term Activity Ratio
Net fixed asset turnover (including operating lease, right-of-use asset)1 7.12 6.31 7.29 8.25 8.05
Benchmarks
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2
Boeing Co. 5.04 4.45 5.59 8.00 7.37
Caterpillar Inc. 3.79 3.00 3.75 3.82 3.01
General Electric Co. 4.55 1.63 1.89 2.24 2.10
Honeywell International Inc. 5.28 5.15 6.12 7.89 6.84
Lockheed Martin Corp. 7.54 7.96 7.88 8.78 8.84
Raytheon Technologies Corp. 3.80 3.36 5.02 5.41 5.87
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector
Capital Goods 4.76 3.18 3.79 4.26 3.91
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry
Industrials 1.79 1.46 1.90 2.11 2.12

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).

1 2021 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Operating revenue ÷ Net plant and equipment (including operating lease, right-of-use asset)
= 14,455 ÷ 2,031 = 7.12

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Net fixed asset turnover (including operating lease, right-of-use asset) An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). Illinois Tool Works Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Total Asset Turnover

Illinois Tool Works Inc., total asset turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Operating revenue 14,455  12,574  14,109  14,768  14,314 
Total assets 16,077  15,612  15,068  14,870  16,780 
Long-term Activity Ratio
Total asset turnover1 0.90 0.81 0.94 0.99 0.85
Benchmarks
Total Asset Turnover, Competitors2
Boeing Co. 0.45 0.38 0.57 0.86 1.01
Caterpillar Inc. 0.58 0.50 0.65 0.66 0.55
General Electric Co. 0.36 0.29 0.33 0.37 0.30
Honeywell International Inc. 0.53 0.51 0.63 0.72 0.68
Lockheed Martin Corp. 1.32 1.29 1.26 1.20 1.10
Raytheon Technologies Corp. 0.40 0.35 0.55 0.50 0.62
Total Asset Turnover, Sector
Capital Goods 0.50 0.43 0.54 0.58 0.53
Total Asset Turnover, Industry
Industrials 0.56 0.47 0.63 0.66 0.63

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).

1 2021 Calculation
Total asset turnover = Operating revenue ÷ Total assets
= 14,455 ÷ 16,077 = 0.90

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Illinois Tool Works Inc. total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Equity Turnover

Illinois Tool Works Inc., equity turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Operating revenue 14,455  12,574  14,109  14,768  14,314 
Stockholders’ equity attributable to ITW 3,625  3,181  3,026  3,254  4,585 
Long-term Activity Ratio
Equity turnover1 3.99 3.95 4.66 4.54 3.12
Benchmarks
Equity Turnover, Competitors2
Boeing Co. 298.31 263.08
Caterpillar Inc. 2.92 2.55 3.48 3.69 3.12
General Electric Co. 1.76 2.05 3.09 3.66 1.76
Honeywell International Inc. 1.85 1.86 1.98 2.30 2.35
Lockheed Martin Corp. 6.12 10.87 19.13 38.57
Raytheon Technologies Corp. 0.88 0.78 1.84 1.73 2.02
Equity Turnover, Sector
Capital Goods 2.41 2.53 3.98 4.15 3.22
Equity Turnover, Industry
Industrials 3.05 3.14 4.00 4.01 3.28

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).

1 2021 Calculation
Equity turnover = Operating revenue ÷ Stockholders’ equity attributable to ITW
= 14,455 ÷ 3,625 = 3.99

2 Click competitor name to see calculations.

Long-term activity ratio Description The company
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. Illinois Tool Works Inc. equity turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.