Illinois Tool Works (ITW) FY2021 results: revenue $14.5 billion, up 15.0% on the year

Illinois Tool Works Inc. (ITW) reported revenue of $14.5 billion for fiscal 2021, the year ended 31 December 2021, up 15.0% on the year before. Net income was $2.7 billion, up 27.7%, and diluted earnings per share $8.51. The figures are the company's own, from the 10-K it filed with the SEC on 11 February 2022.

Revenue

$14.5 billion

+15.0% on the year

FY2014FY2021

Operating margin

24.1%

22.9% a year earlier

FY2014FY2021

Net income

$2.7 billion

+27.7% on the year

FY2014FY2021

Diluted EPS

$8.51

+28.4% on the year

FY2014FY2021

this yearthe year beforeHover a bar for its figure.

The year in brief

The quarters: Q4 FY2021

Income statement (profit and loss)

$ million	FY2021	FY2020	FY2019	On the year
Revenue	14,455	12,574	14,109	+15.0%
Cost of revenue	8,489	7,375	8,187	+15.1%
Gross profit	5,966	5,199	5,922	+14.8%
Gross margin	41.3%	41.3%	42.0%
Research and development	239	214	221	+11.7%
Operating income	3,477	2,882	3,402	+20.6%
Operating margin	24.1%	22.9%	24.1%
Interest expense	202	206	221	-1.9%
Pre-tax income	3,326	2,704	3,288	+23.0%
Income tax	632	595	767	+6.2%
Effective tax rate	19.0%	22.0%	23.3%
Net income	2,694	2,109	2,521	+27.7%
Net margin	18.6%	16.8%	17.9%
Diluted EPS	$8.51	$6.63	$7.74	+28.4%

$ million except per share.

Free 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	FY2021	FY2020	FY2019	On the year
Operating cash flow	2,557	2,807	2,995	-8.9%
Capital expenditure	296	236	326	+25.4%
Free cash flow	2,261	2,571	2,669	-12.1%
Free cash flow margin	15.6%	20.4%	18.9%
Cash from investing	-984	-214	-183
Cash from financing	-2,564	-2,049	-2,326
Share-based compensation	53.0	42.0	41.0	+26.2%
Buybacks	1,000	706	1,500	+41.6%
Dividends paid	1,463	1,379	1,321	+6.1%
Dividend per share	$4.72	$4.42	$4.14	+6.8%
Diluted shares, weighted	316m	318m	326m	-0.6%
Shares outstanding at period end	313m	317m	320m	-1.2%

Balance sheet

$ million	FY2021	FY2020	FY2019	On the year
Shareholders' equity	3,626	3,182	3,030	+14.0%
Debt	7,687	8,122	7,758	-5.4%
Operating lease liabilities	133	133	128	0.0%
Other liabilities	4,631	4,175	4,152	+10.9%
Total liabilities and equity	16,077	15,612	15,068	+3.0%
Fixed assets	1,809	1,777	1,729	+1.8%
Goodwill	4,965	4,690	4,492	+5.9%
Intangible assets	972	781	851	+24.5%
Cash and equivalents	1,527	2,564	1,981	-40.4%
Receivables	2,840	2,506	2,461	+13.3%
Inventory	1,694	1,189	1,164	+42.5%
Other assets	2,270	2,105	2,390	+7.8%
Total assets	16,077	15,612	15,068	+3.0%

10-K for the year ended 31 December 2021, filed 11 February 2022: the filing.