Illinois Tool Works Inc
NYSE:ITW

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Illinois Tool Works Inc
NYSE:ITW
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Price: 251.375 USD -0.13%
Market Cap: 73.7B USD

Operating Margin
Illinois Tool Works Inc

25.9%
Current
25%
Average
6.7%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
25.9%
=
Operating Profit
4.1B
/
Revenue
15.8B

Operating Margin Across Competitors

Illinois Tool Works Inc
Glance View

Economic Moat
None
Market Cap
73.7B USD
Industry
Machinery

Nestled within the bustling landscape of American manufacturing, Illinois Tool Works Inc. (ITW) has long been a paragon of innovation and measured growth. Founded over a century ago in 1912, ITW has evolved from a modest tool manufacturer into a diversified, global enterprise, consistently ranking among the Fortune 200. With an impressive portfolio encompassing more than 17,000 patents, the company thrives on its decentralized structure, empowering its distinct business segments to operate with agility and tailor solutions for niche markets. ITW operates within seven primary sectors: Automotive OEM, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products. Each of these segments operates with an entrepreneurial spirit, focusing on specialized markets and serving as the backbone of the company’s enduring success. The magic behind ITW’s profitability and sustained growth lies in its highly effective "80/20 business model," where 80% of revenue comes from 20% of customers, products, and suppliers. This focus allows the company to streamline its operations, honing in on high-margin products and solutions that cater to the most profitable customer needs. By continually refining its portfolio, ITW reduces complexity and fosters innovation, leading to a cycle of continuous improvement and enhanced operational efficiency. At the heart of its business strategy is a commitment to vital research and development, ensuring that ITW remains at the forefront of industry developments. With a robust financial position and strategic acquisitions, ITW continues to fortify its global footprint, reinforcing its vision of providing innovative, customer-focused solutions that drive sustainable growth.

ITW Intrinsic Value
193.358 USD
Overvaluation 23%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
25.9%
=
Operating Profit
4.1B
/
Revenue
15.8B
What is the Operating Margin of Illinois Tool Works Inc?

Based on Illinois Tool Works Inc's most recent financial statements, the company has Operating Margin of 25.9%.

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