Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Illinois Tool Works Inc. (NYSE:ITW)

Analysis of Long-term (Investment) Activity Ratios

Beginner level

Long-term Activity Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net fixed asset turnover 7.08 8.16 8.25 8.05 8.23
Net fixed asset turnover (including operating lease, right-of-use asset) 6.31 7.29 8.25 8.05 8.23
Total asset turnover 0.81 0.94 0.99 0.85 0.89
Equity turnover 3.95 4.66 4.54 3.12 3.20

Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-10).

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.’s net fixed asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
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.’s net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2018 to 2019 and from 2019 to 2020.
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Illinois Tool Works Inc.’s total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. Illinois Tool Works Inc.’s equity turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Net Fixed Asset Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Operating revenue 12,574  14,109  14,768  14,314  13,599 
Net plant and equipment 1,777  1,729  1,791  1,778  1,652 
Long-term Activity Ratio
Net fixed asset turnover1 7.08 8.16 8.25 8.05 8.23
Benchmarks
Net Fixed Asset Turnover, Competitors2
3M Co. 3.42 3.44 3.75 3.57 3.54
Boeing Co. 4.92 6.12 8.00 7.37 7.38
Caterpillar Inc. 3.15 3.93 3.82 3.01 2.33
General Electric Co. 1.75 2.02 2.24 2.10 2.19
Honeywell International Inc. 5.86 6.89 7.89 6.84 6.78
Lockheed Martin Corp. 9.07 9.07 8.78 8.84 8.51
Northrop Grumman Corp. 5.20 4.90 4.72 6.11 6.83
Raytheon Technologies Corp. 3.78 6.04 5.41 5.87 6.25
Net Fixed Asset Turnover, Sector
Capital Goods 3.63 4.21 4.30 4.02 4.01
Net Fixed Asset Turnover, Industry
Industrials 1.99 2.22 2.35 2.26 2.22

Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-10).

1 2020 Calculation
Net fixed asset turnover = Operating revenue ÷ Net plant and equipment
= 12,574 ÷ 1,777 = 7.08

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.’s net fixed asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

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 LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Operating revenue 12,574  14,109  14,768  14,314  13,599 
 
Net plant and equipment 1,777  1,729  1,791  1,778  1,652 
Operating lease right-of-use asset 216  206  —  —  — 
Net plant and equipment (including operating lease, right-of-use asset) 1,993  1,935  1,791  1,778  1,652 
Long-term Activity Ratio
Net fixed asset turnover (including operating lease, right-of-use asset)1 6.31 7.29 8.25 8.05 8.23
Benchmarks
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2
3M Co. 3.13 3.15 3.75 3.57 3.54
Boeing Co. 4.45 5.59 8.00 7.37 7.38
Caterpillar Inc. 3.00 3.75 3.82 3.01 2.33
General Electric Co. 1.63 1.89 2.24 2.10 2.19
Honeywell International Inc. 5.15 6.12 7.89 6.84 6.78
Lockheed Martin Corp. 7.96 7.88 8.78 8.84 8.51
Northrop Grumman Corp. 4.28 4.02 4.72 6.11 6.83
Raytheon Technologies Corp. 3.36 5.02 5.41 5.87 6.25
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector
Capital Goods 3.30 3.81 4.30 4.02 4.01
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry
Industrials 1.80 2.10 2.35 2.26 2.22

Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-10).

1 2020 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)
= 12,574 ÷ 1,993 = 6.31

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.’s net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2018 to 2019 and from 2019 to 2020.

Total Asset Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Operating revenue 12,574  14,109  14,768  14,314  13,599 
Total assets 15,612  15,068  14,870  16,780  15,201 
Long-term Activity Ratio
Total asset turnover1 0.81 0.94 0.99 0.85 0.89
Benchmarks
Total Asset Turnover, Competitors2
3M Co. 0.68 0.72 0.90 0.83 0.92
Boeing Co. 0.38 0.57 0.86 1.01 1.05
Caterpillar Inc. 0.50 0.65 0.66 0.55 0.48
General Electric Co. 0.29 0.33 0.37 0.30 0.30
Honeywell International Inc. 0.51 0.63 0.72 0.68 0.73
Lockheed Martin Corp. 1.29 1.26 1.20 1.10 0.99
Northrop Grumman Corp. 0.83 0.82 0.80 0.74 0.96
Raytheon Technologies Corp. 0.35 0.55 0.50 0.62 0.64
Total Asset Turnover, Sector
Capital Goods 0.47 0.57 0.61 0.56 0.57
Total Asset Turnover, Industry
Industrials 0.52 0.61 0.65 0.61 0.60

Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-10).

1 2020 Calculation
Total asset turnover = Operating revenue ÷ Total assets
= 12,574 ÷ 15,612 = 0.81

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.’s total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Equity Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Operating revenue 12,574  14,109  14,768  14,314  13,599 
Stockholders’ equity attributable to ITW 3,181  3,026  3,254  4,585  4,254 
Long-term Activity Ratio
Equity turnover1 3.95 4.66 4.54 3.12 3.20
Benchmarks
Equity Turnover, Competitors2
3M Co. 2.50 3.19 3.34 2.74 2.92
Boeing Co. 298.31 263.08 115.75
Caterpillar Inc. 2.55 3.48 3.69 3.12 2.72
General Electric Co. 2.05 3.09 3.66 1.76 1.46
Honeywell International Inc. 1.86 1.98 2.30 2.35 2.03
Lockheed Martin Corp. 10.87 19.13 38.57 31.27
Northrop Grumman Corp. 3.48 3.84 3.68 3.66 4.66
Raytheon Technologies Corp. 0.78 1.84 1.73 2.02 2.08
Equity Turnover, Sector
Capital Goods 2.62 3.92 4.06 3.20 2.86
Equity Turnover, Industry
Industrials 2.72 3.49 3.50 2.89 2.79

Based on: 10-K (filing date: 2021-02-12), 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-10).

1 2020 Calculation
Equity turnover = Operating revenue ÷ Stockholders’ equity attributable to ITW
= 12,574 ÷ 3,181 = 3.95

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.’s equity turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.