Illinois Tool Works (LTS:0J8W) ROCE % : 38.29% (As of Dec. 2024)

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What is Illinois Tool Works ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Illinois Tool Works's annualized ROCE % for the quarter that ended in Dec. 2024 was 38.29%.

Illinois Tool Works ROCE % Historical Data

The historical data trend for Illinois Tool Works's ROCE % 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.

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Illinois Tool Works ROCE % Chart

Illinois Tool Works Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROCE %

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22.44

27.53

34.32

37.51

43.56

Illinois Tool Works Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															35.84	42.23	40.03	52.11	38.29

Illinois Tool Works ROCE % Calculation

Illinois Tool Works's annualized ROCE % for the fiscal year that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	4705	/	( ( (15518 - 4675)	+	(15067 - 4308) )	/ 2 )
	=	4705	/	( (10843	+	10759)	/ 2 )
	=	4705	/	10801
	=	43.56 %

Illinois Tool Works's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	4204	/	( ( (15824 - 4627)	+	(15067 - 4308) )	/ 2 )
	=	4204	/	( ( 11197	+	10759 )	/ 2 )
	=	4204	/	10978
	=	38.29 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2024) EBIT data.

Illinois Tool Works (LTS:0J8W) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Illinois Tool Works ROCE % Related Terms

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Illinois Tool Works Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Illinois Tool Works Inc (LTS:0J8W) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

ITW:USA ILT:Germany ILT:Germany ILT:Germany ITW:Austria

Address

155 Harlem Avenue, Glenview, IL, USA, 60025

Website

https://www.itw.com

Founded in 1912, Illinois Tool Works has become a diversified industrial manufacturer through acquisitions and innovations that follow customer needs. ITW operates through seven business segments, with no segment representing more than one fifth of revenue. ITW's automotive OEM segment sells vehicle components; its food equipment segment sells commercial kitchen appliances; its test & measurement and electronics segment sells inspection and analysis equipment; its welding segment sells welding equipment and consumables; its polymers & fluids segment sells industrial and consumer adhesives, solvents, and coatings; its construction products segment sells building fasteners and tools; and its specialty products segment sells medical, packaging, HVAC, and airport ground equipment.

Illinois Tool Works Headlines

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