Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Illinois Tool Works Inc., long-term (investment) activity ratios
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
| 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 | — | — | |
| Caterpillar Inc. | 3.99 | 3.15 | 3.93 | — | — | |
| Eaton Corp. plc | 6.41 | 6.02 | 6.12 | — | — | |
| GE Aerospace | 5.47 | 1.75 | 2.02 | — | — | |
| Honeywell International Inc. | 6.18 | 5.86 | 6.89 | — | — | |
| Lockheed Martin Corp. | 8.83 | 9.07 | 9.07 | — | — | |
| RTX Corp. | 4.30 | 3.78 | 6.04 | — | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Capital Goods | 5.46 | 3.55 | 4.23 | — | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | 3.04 | 2.41 | 2.76 | — | — | |
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
| 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 | — | — | |
| Caterpillar Inc. | 3.79 | 3.00 | 3.75 | — | — | |
| Eaton Corp. plc | 5.60 | 5.26 | 5.44 | — | — | |
| GE Aerospace | 4.55 | 1.63 | 1.89 | — | — | |
| Honeywell International Inc. | 5.28 | 5.15 | 6.12 | — | — | |
| Lockheed Martin Corp. | 7.54 | 7.96 | 7.88 | — | — | |
| RTX Corp. | 3.80 | 3.36 | 5.02 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Capital Goods | 4.80 | 3.25 | 3.86 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | 2.62 | 2.13 | 2.57 | — | — | |
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
| 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 | — | — | |
| Caterpillar Inc. | 0.58 | 0.50 | 0.65 | — | — | |
| Eaton Corp. plc | 0.58 | 0.56 | 0.65 | — | — | |
| GE Aerospace | 0.36 | 0.29 | 0.33 | — | — | |
| Honeywell International Inc. | 0.53 | 0.51 | 0.63 | — | — | |
| Lockheed Martin Corp. | 1.32 | 1.29 | 1.26 | — | — | |
| RTX Corp. | 0.40 | 0.35 | 0.55 | — | — | |
| Total Asset Turnover, Sector | ||||||
| Capital Goods | 0.50 | 0.43 | 0.54 | — | — | |
| Total Asset Turnover, Industry | ||||||
| Industrials | 0.60 | 0.51 | 0.61 | — | — | |
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
| 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. | — | — | — | — | — | |
| Caterpillar Inc. | 2.92 | 2.55 | 3.48 | — | — | |
| Eaton Corp. plc | 1.20 | 1.20 | 1.33 | — | — | |
| GE Aerospace | 1.76 | 2.05 | 3.09 | — | — | |
| Honeywell International Inc. | 1.85 | 1.86 | 1.98 | — | — | |
| Lockheed Martin Corp. | 6.12 | 10.87 | 19.13 | — | — | |
| RTX Corp. | 0.88 | 0.78 | 1.84 | — | — | |
| Equity Turnover, Sector | ||||||
| Capital Goods | 2.28 | 2.39 | 3.60 | — | — | |
| Equity Turnover, Industry | ||||||
| Industrials | 2.58 | 2.75 | 3.53 | — | — | |
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. |