Illinois Tool Works (ITW) FY2020 results: revenue $12.6 billion, down 10.9% on the year
Illinois Tool Works Inc. (ITW) reported revenue of $12.6 billion for fiscal 2020, the year ended 31 December 2020, down 10.9% on the year before. Net income was $2.1 billion, down 16.3%, and diluted earnings per share $6.63. The figures are the company's own, from the 10-K it filed with the SEC on 12 February 2021.
Revenue
$12.6 billion
-10.9% on the year
FY2013FY2020
Operating margin
22.9%
24.1% a year earlier
FY2013FY2020
Net income
$2.1 billion
-16.3% on the year
FY2013FY2020
Diluted EPS
$6.63
-14.3% on the year
FY2013FY2020
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2020
FY2019
FY2018
On the year
Last 8 years
Revenue
12,574
14,109
14,768
-10.9%
Cost of revenue
7,375
8,187
8,604
-9.9%
Gross profit
5,199
5,922
6,164
-12.2%
Gross margin
41.3%
42.0%
41.7%
Research and development
214
221
233
-3.2%
Operating income
2,882
3,402
3,584
-15.3%
Operating margin
22.9%
24.1%
24.3%
Interest expense
206
221
257
-6.8%
Pre-tax income
2,704
3,288
3,394
-17.8%
Income tax
595
767
831
-22.4%
Effective tax rate
22.0%
23.3%
24.5%
Net income
2,109
2,521
2,563
-16.3%
Net margin
16.8%
17.9%
17.4%
Diluted EPS
$6.63
$7.74
$7.60
-14.3%
$ 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
FY2020
FY2019
FY2018
On the year
Last 8 years
Operating cash flow
2,807
2,995
2,811
-6.3%
Capital expenditure
236
326
364
-27.6%
Free cash flow
2,571
2,669
2,447
-3.7%
Free cash flow margin
20.4%
18.9%
16.6%
Cash from investing
-214
-183
-325
Cash from financing
-2,049
-2,326
-3,964
Share-based compensation
42.0
41.0
40.0
+2.4%
Buybacks
706
1,500
2,000
-52.9%
Dividends paid
1,379
1,321
1,124
+4.4%
Dividend per share
$4.42
$4.14
$3.56
+6.8%
Diluted shares, weighted
318m
326m
337m
-2.2%
Shares outstanding at period end
317m
320m
328m
-1.0%
Balance sheet
$ million
FY2020
FY2019
FY2018
On the year
Last 8 years
Shareholders' equity
3,182
3,030
3,258
+5.0%
Debt
8,122
7,758
7,379
+4.7%
Operating lease liabilities
133
128
n/a
+3.9%
Other liabilities
4,175
4,152
4,233
+0.6%
Total liabilities and equity
15,612
15,068
14,870
+3.6%
Fixed assets
1,777
1,729
1,791
+2.8%
Goodwill
4,690
4,492
4,633
+4.4%
Intangible assets
781
851
1,084
-8.2%
Cash and equivalents
2,564
1,981
1,504
+29.4%
Receivables
2,506
2,461
2,622
+1.8%
Inventory
1,189
1,164
1,318
+2.1%
Other assets
2,105
2,390
1,918
-11.9%
Total assets
15,612
15,068
14,870
+3.6%
10-K for the year ended 31 December 2020, filed 12 February 2021: the filing.