Illinois Tool Works (ITW) FY2016 results: revenue $13.6 billion, up 1.4% on the year
Illinois Tool Works Inc. (ITW) reported revenue of $13.6 billion for fiscal 2016, the year ended 31 December 2016, up 1.4% on the year before. Net income was $2.0 billion, up 7.2%, and diluted earnings per share $5.70. The figures are the company's own, from the 10-K it filed with the SEC on 15 February 2019.
Revenue
$13.6 billion
+1.4% on the year
FY2009FY2016
Operating margin
22.5%
21.4% a year earlier
FY2009FY2016
Net income
$2.0 billion
+7.2% on the year
FY2009FY2016
Diluted EPS
$5.70
+11.1% on the year
FY2009FY2016
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2016
FY2015
FY2014
On the year
Last 8 years
Revenue
13,599
13,405
14,484
+1.4%
Cost of revenue
7,896
7,888
8,673
+0.1%
Gross profit
5,703
5,517
5,811
+3.4%
Gross margin
41.9%
41.2%
40.1%
Research and development
223
218
227
+2.3%
Operating income
3,056
2,867
2,888
+6.6%
Operating margin
22.5%
21.4%
19.9%
Interest expense
237
226
250
+4.9%
Pre-tax income
2,908
2,719
2,699
+7.0%
Income tax
873
820
809
+6.5%
Effective tax rate
30.0%
30.2%
30.0%
Net income
2,035
1,899
2,946
+7.2%
Net margin
15.0%
14.2%
20.3%
Diluted EPS
$5.70
$5.13
$7.28
+11.1%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2016
FY2015
FY2014
On the year
Last 8 years
Operating cash flow
2,302
2,299
1,616
+0.1%
Capital expenditure
273
284
361
-3.9%
Free cash flow
2,029
2,015
1,255
+0.7%
Free cash flow margin
14.9%
15.0%
8.7%
Cash from investing
-532
-210
2,842
Cash from financing
-2,255
-2,526
-3,551
Depreciation and amortisation
n/a
475
504
Share-based compensation
39.0
41.0
39.0
-4.9%
Buybacks
2,000
2,002
4,346
-0.1%
Dividends paid
821
742
711
+10.6%
Dividend per share
$2.40
$2.07
$1.81
+15.9%
Diluted shares, weighted
357m
370m
405m
-3.5%
Shares outstanding at period end
347m
364m
383m
-4.6%
Balance sheet
$ million
FY2016
FY2015
FY2014
On the year
Last 8 years
Shareholders' equity
4,259
5,228
6,824
-18.5%
Debt
7,827
7,422
7,419
+5.5%
Other liabilities
3,115
3,079
3,222
+1.2%
Total liabilities and equity
15,201
15,729
17,465
-3.4%
Fixed assets
1,652
1,577
1,686
+4.8%
Goodwill
4,558
4,439
4,667
+2.7%
Intangible assets
1,463
1,560
1,799
-6.2%
Cash and equivalents
2,472
3,090
3,990
-20.0%
Receivables
2,357
2,203
2,293
+7.0%
Inventory
1,076
1,086
1,180
-0.9%
Other assets
1,623
1,774
1,850
-8.5%
Total assets
15,201
15,729
17,465
-3.4%
10-K for the year ended 31 December 2016, filed 15 February 2019: the filing.