Illinois Tool Revenue vs. Net Income
| ILT Stock | EUR 250.80 0.80 0.32% |
For Illinois Tool profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Illinois Tool to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Illinois Tool Works utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Illinois Tool's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Illinois Tool Works over time as well as its relative position and ranking within its peers.
Illinois |
Illinois Tool Works Net Income vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Illinois Tool's current stock value. Our valuation model uses many indicators to compare Illinois Tool value to that of its competitors to determine the firm's financial worth. Illinois Tool Works is rated below average in revenue category among its peers. It is rated fifth overall in net income category among its peers making up about 0.19 of Net Income per Revenue. The ratio of Revenue to Net Income for Illinois Tool Works is roughly 5.25 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Illinois Tool's earnings, one of the primary drivers of an investment's value.Illinois Revenue vs. Competition
Illinois Tool Works is rated below average in revenue category among its peers. Market size based on revenue of Diversified Industrials industry is currently estimated at about 196.52 Billion. Illinois Tool holds roughly 15.93 Billion in revenue claiming about 8% of equities under Diversified Industrials industry.
Illinois Net Income vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Illinois Tool |
| = | 15.93 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Illinois Tool |
| = | 3.03 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Illinois Net Income Comparison
Illinois Tool is rated fourth overall in net income category among its peers.
Illinois Tool Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Illinois Tool, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Illinois Tool will eventually generate negative long term returns. The profitability progress is the general direction of Illinois Tool's change in net profit over the period of time. It can combine multiple indicators of Illinois Tool, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Illinois Tool Works Inc. manufactures and sells industrial products and equipment worldwide. Illinois Tool Works Inc. was founded in 1912 and is based in Glenview, Illinois. Illinois Tool operates under Diversified Industrials classification in Germany and is traded on Frankfurt Stock Exchange. It employs 48000 people.
Illinois Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Illinois Tool. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Illinois Tool position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Illinois Tool's important profitability drivers and their relationship over time.
Use Illinois Tool in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Illinois Tool position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Illinois Tool will appreciate offsetting losses from the drop in the long position's value.Illinois Tool Pair Trading
Illinois Tool Works Pair Trading Analysis
The ability to find closely correlated positions to Illinois Tool could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Illinois Tool when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Illinois Tool - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Illinois Tool Works to buy it.
The correlation of Illinois Tool is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Illinois Tool moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Illinois Tool Works moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Illinois Tool can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Illinois Tool position
In addition to having Illinois Tool in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in Illinois Stock
When determining whether Illinois Tool Works is a strong investment it is important to analyze Illinois Tool's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Illinois Tool's future performance. For an informed investment choice regarding Illinois Stock, refer to the following important reports:Check out Risk vs Return Analysis. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
To fully project Illinois Tool's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Illinois Tool Works at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Illinois Tool's income statement, its balance sheet, and the statement of cash flows.