Stock Analysis on Net
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.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Illinois Tool Works Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2021 74.32% = 16.76% × 4.44
Sep 30, 2021 78.09% = 17.57% × 4.44
Jun 30, 2021 75.85% = 17.14% × 4.43
Mar 31, 2021 67.62% = 14.14% × 4.78
Dec 31, 2020 66.30% = 13.51% × 4.91
Sep 30, 2020 78.19% = 14.11% × 5.54
Jun 30, 2020 92.75% = 15.33% × 6.05
Mar 31, 2020 109.07% = 17.60% × 6.20
Dec 31, 2019 83.31% = 16.73% × 4.98
Sep 30, 2019 83.85% = 16.62% × 5.04
Jun 30, 2019 79.75% = 16.23% × 4.91
Mar 31, 2019 78.47% = 16.36% × 4.80
Dec 31, 2018 78.76% = 17.24% × 4.57
Sep 30, 2018 53.08% = 12.27% × 4.32
Jun 30, 2018 49.72% = 12.12% × 4.10
Mar 31, 2018 43.35% = 11.16% × 3.89
Dec 31, 2017 36.79% = 10.05% × 3.66
Sep 30, 2017 — = — × 3.25
Jun 30, 2017 — = — × 3.34
Mar 31, 2017 — = — × 3.46

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2021 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Illinois Tool Works Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2021 74.32% = 18.64% × 0.90 × 4.44
Sep 30, 2021 78.09% = 19.14% × 0.92 × 4.44
Jun 30, 2021 75.85% = 19.07% × 0.90 × 4.43
Mar 31, 2021 67.62% = 17.18% × 0.82 × 4.78
Dec 31, 2020 66.30% = 16.77% × 0.81 × 4.91
Sep 30, 2020 78.19% = 16.77% × 0.84 × 5.54
Jun 30, 2020 92.75% = 17.16% × 0.89 × 6.05
Mar 31, 2020 109.07% = 18.06% × 0.97 × 6.20
Dec 31, 2019 83.31% = 17.87% × 0.94 × 4.98
Sep 30, 2019 83.85% = 17.49% × 0.95 × 5.04
Jun 30, 2019 79.75% = 17.17% × 0.95 × 4.91
Mar 31, 2019 78.47% = 17.21% × 0.95 × 4.80
Dec 31, 2018 78.76% = 17.36% × 0.99 × 4.57
Sep 30, 2018 53.08% = 12.69% × 0.97 × 4.32
Jun 30, 2018 49.72% = 12.70% × 0.95 × 4.10
Mar 31, 2018 43.35% = 12.36% × 0.90 × 3.89
Dec 31, 2017 36.79% = 11.79% × 0.85 × 3.66
Sep 30, 2017 — = — × — × 3.25
Jun 30, 2017 — = — × — × 3.34
Mar 31, 2017 — = — × — × 3.46

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2021 is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Illinois Tool Works Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2021 74.32% = 0.81 × 0.94 × 24.41% × 0.90 × 4.44
Sep 30, 2021 78.09% = 0.81 × 0.94 × 25.00% × 0.92 × 4.44
Jun 30, 2021 75.85% = 0.81 × 0.94 × 24.99% × 0.90 × 4.43
Mar 31, 2021 67.62% = 0.78 × 0.93 × 23.59% × 0.82 × 4.78
Dec 31, 2020 66.30% = 0.78 × 0.93 × 23.14% × 0.81 × 4.91
Sep 30, 2020 78.19% = 0.78 × 0.93 × 23.20% × 0.84 × 5.54
Jun 30, 2020 92.75% = 0.78 × 0.93 × 23.70% × 0.89 × 6.05
Mar 31, 2020 109.07% = 0.77 × 0.94 × 24.97% × 0.97 × 6.20
Dec 31, 2019 83.31% = 0.77 × 0.94 × 24.87% × 0.94 × 4.98
Sep 30, 2019 83.85% = 0.76 × 0.93 × 24.66% × 0.95 × 5.04
Jun 30, 2019 79.75% = 0.75 × 0.93 × 24.46% × 0.95 × 4.91
Mar 31, 2019 78.47% = 0.75 × 0.93 × 24.62% × 0.95 × 4.80
Dec 31, 2018 78.76% = 0.76 × 0.93 × 24.72% × 0.99 × 4.57
Sep 30, 2018 53.08% = 0.56 × 0.93 × 24.53% × 0.97 × 4.32
Jun 30, 2018 49.72% = 0.55 × 0.93 × 25.01% × 0.95 × 4.10
Mar 31, 2018 43.35% = 0.54 × 0.93 × 24.90% × 0.90 × 3.89
Dec 31, 2017 36.79% = 0.52 × 0.93 × 24.66% × 0.85 × 3.66
Sep 30, 2017 — = — × — × — × — × 3.25
Jun 30, 2017 — = — × — × — × — × 3.34
Mar 31, 2017 — = — × — × — × — × 3.46

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2021 is the decrease in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Illinois Tool Works Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2021 16.76% = 18.64% × 0.90
Sep 30, 2021 17.57% = 19.14% × 0.92
Jun 30, 2021 17.14% = 19.07% × 0.90
Mar 31, 2021 14.14% = 17.18% × 0.82
Dec 31, 2020 13.51% = 16.77% × 0.81
Sep 30, 2020 14.11% = 16.77% × 0.84
Jun 30, 2020 15.33% = 17.16% × 0.89
Mar 31, 2020 17.60% = 18.06% × 0.97
Dec 31, 2019 16.73% = 17.87% × 0.94
Sep 30, 2019 16.62% = 17.49% × 0.95
Jun 30, 2019 16.23% = 17.17% × 0.95
Mar 31, 2019 16.36% = 17.21% × 0.95
Dec 31, 2018 17.24% = 17.36% × 0.99
Sep 30, 2018 12.27% = 12.69% × 0.97
Jun 30, 2018 12.12% = 12.70% × 0.95
Mar 31, 2018 11.16% = 12.36% × 0.90
Dec 31, 2017 10.05% = 11.79% × 0.85
Sep 30, 2017 — = — × —
Jun 30, 2017 — = — × —
Mar 31, 2017 — = — × —

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2021 is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Illinois Tool Works Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2021 16.76% = 0.81 × 0.94 × 24.41% × 0.90
Sep 30, 2021 17.57% = 0.81 × 0.94 × 25.00% × 0.92
Jun 30, 2021 17.14% = 0.81 × 0.94 × 24.99% × 0.90
Mar 31, 2021 14.14% = 0.78 × 0.93 × 23.59% × 0.82
Dec 31, 2020 13.51% = 0.78 × 0.93 × 23.14% × 0.81
Sep 30, 2020 14.11% = 0.78 × 0.93 × 23.20% × 0.84
Jun 30, 2020 15.33% = 0.78 × 0.93 × 23.70% × 0.89
Mar 31, 2020 17.60% = 0.77 × 0.94 × 24.97% × 0.97
Dec 31, 2019 16.73% = 0.77 × 0.94 × 24.87% × 0.94
Sep 30, 2019 16.62% = 0.76 × 0.93 × 24.66% × 0.95
Jun 30, 2019 16.23% = 0.75 × 0.93 × 24.46% × 0.95
Mar 31, 2019 16.36% = 0.75 × 0.93 × 24.62% × 0.95
Dec 31, 2018 17.24% = 0.76 × 0.93 × 24.72% × 0.99
Sep 30, 2018 12.27% = 0.56 × 0.93 × 24.53% × 0.97
Jun 30, 2018 12.12% = 0.55 × 0.93 × 25.01% × 0.95
Mar 31, 2018 11.16% = 0.54 × 0.93 × 24.90% × 0.90
Dec 31, 2017 10.05% = 0.52 × 0.93 × 24.66% × 0.85
Sep 30, 2017 — = — × — × — × —
Jun 30, 2017 — = — × — × — × —
Mar 31, 2017 — = — × — × — × —

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2021 is the decrease in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Illinois Tool Works Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2021 18.64% = 0.81 × 0.94 × 24.41%
Sep 30, 2021 19.14% = 0.81 × 0.94 × 25.00%
Jun 30, 2021 19.07% = 0.81 × 0.94 × 24.99%
Mar 31, 2021 17.18% = 0.78 × 0.93 × 23.59%
Dec 31, 2020 16.77% = 0.78 × 0.93 × 23.14%
Sep 30, 2020 16.77% = 0.78 × 0.93 × 23.20%
Jun 30, 2020 17.16% = 0.78 × 0.93 × 23.70%
Mar 31, 2020 18.06% = 0.77 × 0.94 × 24.97%
Dec 31, 2019 17.87% = 0.77 × 0.94 × 24.87%
Sep 30, 2019 17.49% = 0.76 × 0.93 × 24.66%
Jun 30, 2019 17.17% = 0.75 × 0.93 × 24.46%
Mar 31, 2019 17.21% = 0.75 × 0.93 × 24.62%
Dec 31, 2018 17.36% = 0.76 × 0.93 × 24.72%
Sep 30, 2018 12.69% = 0.56 × 0.93 × 24.53%
Jun 30, 2018 12.70% = 0.55 × 0.93 × 25.01%
Mar 31, 2018 12.36% = 0.54 × 0.93 × 24.90%
Dec 31, 2017 11.79% = 0.52 × 0.93 × 24.66%
Sep 30, 2017 — = — × — × —
Jun 30, 2017 — = — × — × —
Mar 31, 2017 — = — × — × —

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

The primary reason for the decrease in net profit margin ratio over Q4 2021 is the decrease in operating profitability measured by EBIT margin ratio.