Illinois Tool Works Inc. (ITW) Return on Invested Capital (ROIC): 24.49%
Is Illinois Tool Works Inc.’s return on invested capital (ROIC) high or low?
Illinois Tool Works Inc.'s return on invested capital (ROIC) of 24.49% is in line with its 5-year average of 22.94%, near the high end of its 5-year range (16.74%–27.19%).
The return on invested capital (ROIC) for Illinois Tool Works Inc. (ITW) is 24.49% as of Wednesday, June 10, 2026. It is below its 12-month average by 5.22% (25.84%).
ITW Return on Invested Capital (ROIC) Chart
ITW Average Return on Invested Capital (ROIC) Chart
ITW Current vs Average Return on Invested Capital (ROIC) Chart
ITW Return on Invested Capital (ROIC) Metrics
RETURN ON INVESTED CAPITAL (ROIC)
24.49%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
25.84%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
24.99%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
22.94%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
20.21%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
17.66%
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
16.76%
CURRENT VS TTM AVG
-5.22%
CURRENT VS 3Y AVG
-2.01%
CURRENT VS 5Y AVG
+6.74%
CURRENT VS 10Y AVG
+21.19%
CURRENT VS 15Y AVG
+38.69%
CURRENT VS 20Y AVG
+46.15%
ITW Competitors' Return on Invested Capital (ROIC)
| NAME | MARKET CAP | RETURN ON INVESTED CAPITAL (ROIC) | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Illinois Tool Works Inc. (ITW) | — | 24.49% | 25.84% | 24.99% | 22.94% |
| Emerson Electric Co. (EMR) | $76.94B | 7.26% | 6.33% | 6.09% | 7.58% |
| 3M Company (MMM) | $81.79B | 11.53% | 12.46% | 10.54% | 11.94% |
| Rocket Lab USA, Inc. (RKLB) | $62.17B | -10.09% | -16.12% | -18.18% | -20.49% |
| PACCAR Inc (PCAR) | $60.21B | 6.39% | 8.44% | 10.51% | 8.23% |
| Johnson Controls International plc (JCI) | $85.03B | 8.68% | 7.82% | 7.36% | 6.62% |
| Cummins Inc. (CMI) | $87.60B | 11.41% | 12.55% | 9.89% | 10.37% |
| United Parcel Service, Inc. (UPS) | $87.79B | 10.40% | 11.21% | 13.32% | 13.95% |
| Fastenal Company (FAST) | $52.90B | 28.17% | 27.85% | 28.02% | 26.95% |
| Automatic Data Processing, Inc. (ADP) | $92.38B | 24.66% | 32.02% | 35.59% | 31.77% |
Capital Efficiency
ROIC
24.5%
ROE
97.1%
Illinois Tool Works Inc. Return on Invested Capital (ROIC) Formula & Definition
ROIC = NOPAT / Invested Capital
Return on invested capital measures the after-tax return a company earns on all capital (debt and equity) invested in the business.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
Illinois Tool Works Inc. Return on Invested Capital (ROIC) FAQ
- What is the return on invested capital (ROIC) for Illinois Tool Works Inc. (ITW)?
- The return on invested capital (ROIC) for ITW stock is 24.49%.
- Is Illinois Tool Works Inc.'s return on invested capital (ROIC) high or low?
- Illinois Tool Works Inc.'s return on invested capital (ROIC) of 24.49% is in line with its 5-year average of 22.94%, near the high end of its 5-year range (16.74%–27.19%).
- What is the TTM average return on invested capital (ROIC) for Illinois Tool Works Inc. (ITW)?
- The TTM average return on invested capital (ROIC) for ITW stock is 25.84%.
- What is the 3Y average return on invested capital (ROIC) for Illinois Tool Works Inc. (ITW)?
- The 3Y average return on invested capital (ROIC) for ITW stock is 24.99%.
- What is the 5Y average return on invested capital (ROIC) for Illinois Tool Works Inc. (ITW)?
- The 5Y average return on invested capital (ROIC) for ITW stock is 22.94%.
- What is the 10Y average return on invested capital (ROIC) for Illinois Tool Works Inc. (ITW)?
- The 10Y average return on invested capital (ROIC) for ITW stock is 20.21%.
- What is the 15Y average return on invested capital (ROIC) for Illinois Tool Works Inc. (ITW)?
- The 15Y average return on invested capital (ROIC) for ITW stock is 17.66%.
- What is the 20Y average return on invested capital (ROIC) for Illinois Tool Works Inc. (ITW)?
- The 20Y average return on invested capital (ROIC) for ITW stock is 16.76%.
Illinois Tool Works Inc. Return on Invested Capital (ROIC) History
| DATE | RETURN ON INVESTED CAPITAL (ROIC) |
|---|---|
| 2025-12-31 | 24.49% |
| 2024-12-31 | 27.19% |
| 2023-12-31 | 24.55% |
| 2022-12-31 | 23.74% |
| 2021-12-31 | 20.95% |
| 2020-12-31 | 16.74% |
| 2019-12-31 | 20.11% |
| 2018-12-31 | 21.35% |
| 2017-12-31 | 12.37% |
| 2016-12-31 | 16.38% |
| 2015-12-31 | 14.42% |
| 2014-12-31 | 12.95% |
| 2013-12-31 | 9.99% |
| 2012-12-31 | 11.52% |
| 2011-12-31 | 13.70% |
| 2010-12-31 | 12.08% |
| 2009-12-31 | 8.22% |
| 2008-12-31 | 16.34% |
| 2007-12-31 | 14.31% |
| 2006-12-31 | 14.53% |
| 2005-12-31 | 15.96% |
| 2004-12-31 | 14.20% |
| 2003-12-31 | 11.05% |
| 2002-12-31 | 10.66% |
| 2001-12-31 | 9.88% |
| 2000-12-31 | 12.34% |
| 1999-12-31 | 12.21% |
| 1998-12-31 | 12.92% |
| 1997-12-31 | 12.98% |
| 1996-12-31 | 12.71% |
Related Metrics
About Illinois Tool Works Inc.
Illinois Tool Works Inc. is a global enterprise specializing in the production and distribution of a wide array of industrial goods and specialized equipment. The company operates through seven distinct divisions: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM division supplies plastic and metal components, various fastening solutions, and integrated assemblies for automobiles, light-duty trucks, and other industrial applications. Its Food Equipment segment delivers commercial kitchen appliances for washing, refrigeration, cooking, and food processing, alongside comprehensive kitchen exhaust, ventilation, and pollution control systems, and offers related maintenance and repair services. The Test & Measurement and Electronics unit manufactures and sells machinery, expendable supplies, and accompanying software designed for assessing materials and structural integrity, in addition to equipment and consumables critical for the creation of electronic subassemblies and microelectronic components. The Welding division focuses on arc welding apparatus, coupled with metal arc welding consumables and associated accessories. The Polymers & Fluids segment produces adhesives, sealing compounds, lubrication and cutting fluids, and various fluids and polymers intended for automotive aftermarket upkeep and cosmetic purposes. The Construction Products segment provides purpose-engineered fastening systems and comprehensive solutions for new housing, renovation projects, and commercial building industries. Lastly, the Specialty Products segment delivers machinery and supplies for beverage packaging, equipment and expendables for product identification and marking, and specialized components and fasteners for appliances. ITW's broad clientele encompasses sectors such as automotive original equipment manufacturers (OEMs) and their suppliers, the commercial food service industry, construction companies, general industrial enterprises, and the automotive aftermarket. The corporation distributes its offerings directly to industrial manufacturers and via an extensive network of independent distributors. Established in 1912, Illinois Tool Works Inc. is headquartered in Glenview, Illinois.
- Sector
- Industrials
- Industry
- Industrial - Machinery
- CEO
- Christopher A. O'Herlihy