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Illinois Tool Works (Illinois Tool Works) EBIT : $4,089 Mil (TTM As of Dec. 2023)


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What is Illinois Tool Works EBIT?

Illinois Tool Works's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2023 was $997 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $4,089 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Illinois Tool Works's annualized ROC % for the quarter that ended in Dec. 2023 was 25.28%. Illinois Tool Works's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 89.20%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Illinois Tool Works's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 5.02%.


Illinois Tool Works EBIT Historical Data

The historical data trend for Illinois Tool Works's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Illinois Tool Works EBIT Chart

Illinois Tool Works Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3,509.00 2,910.00 3,528.00 4,045.00 4,089.00

Illinois Tool Works Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,177.00 982.00 1,030.00 1,080.00 997.00

Competitive Comparison of Illinois Tool Works's EBIT

For the Specialty Industrial Machinery subindustry, Illinois Tool Works's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Illinois Tool Works's EV-to-EBIT Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Illinois Tool Works's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Illinois Tool Works's EV-to-EBIT falls into.



Illinois Tool Works EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $4,089 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Illinois Tool Works  (NYSE:ITW) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Illinois Tool Works's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=3952 * ( 1 - 22.65% )/( (11671 + 12511)/ 2 )
=3056.872/12091
=25.28 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Illinois Tool Works's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=3988/( ( (1904 + max(2564, 0)) + (2224 + max(2250, 0)) )/ 2 )
=3988/( ( 4468 + 4474 )/ 2 )
=3988/4471
=89.20 %

where Working Capital is:

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(3163 + 1799 + 336) - (2734 + 0 + 0)
=2564

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(3123 + 1707 + 212) - (1942 + 395 + 455)
=2250

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Illinois Tool Works's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2023 )
=4089/81477.467
=5.02 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Illinois Tool Works EBIT Related Terms

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Illinois Tool Works (Illinois Tool Works) Business Description

Traded in Other Exchanges
Address
155 Harlem Avenue, Glenview, IL, USA, 60025
Illinois Tool Works is a diversified global manufacturer that produces specialized industrial equipment, consumables, and related services. The firm operates 87 global divisions through seven distinct operating segments: automotive OEM, construction products, food equipment, specialty products, test/measurement and electronics, polymers and fluids, and welding. About half of its revenue comes from its operations in North America, with the remainder originating from international markets. ITW takes a bottom-up and decentralized approach to portfolio management, with the exception that each segment must apply its 80/20 operating process modeled on the Pareto principle.
Executives
Smith David Byron Jr director 155 HARLEM AVE., GLENVIEW IL 60025
Randall J Scheuneman officer: VP & Chief Accounting Officer 155 HARLEM AVE., GLENVIEW IL 60025
Christopher A O'herlihy officer: Executive Vice President 155 HARLEM AVE., GLENVIEW IL 60025
Ernest Scott Santi director, officer: President & CEO ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025
Michael M Larsen officer: SVP & CFO ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025
Kelly J Grier director 155 HARLEM AVE., GLENVIEW IL 60025
Lei Zhang Schlitz officer: Executive Vice President 5757 N. GREENBAY AVENUE, GLENDALE WI 53129
Patricia A. Hartzell officer: Executive Vice President 155 HARLEM AVE., GLENVIEW IL 60025
Javier Gracia Carbonell officer: Executive Vice President 155 HARLEM AVE., GLENVIEW IL 60025
Mary Katherine Lawler officer: SVP & Chief HR Officer ILLINOIS TOOL WORKS INC., 155 HARLEM AVE, GLENVIEW IL 60025
Jay L Henderson director 50 SOUTH LASALLE ST, CHICAGO IL 60603
Jennifer Kaplan Schott officer: SVP, General Counsel & Secy. 155 HARLEM AVE., GLENVIEW IL 60025
Darrell L Ford director 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Finch Norman D. Jr. officer: Sr. VP, General Counsel & Secy C/O ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025
Michael R. Zimmerman officer: Executive Vice President 155 HARLEM AVE., GLENVIEW IL 60025

Illinois Tool Works (Illinois Tool Works) Headlines