ITWCAUTIOUS

ITW Return on Equity (ROE) Analysis

96.8%

Updated 48h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity — a 96.8% ROE means ITW earned nearly $0.97 of profit for every $1 of equity in the most recent period.

Sector Performance

96th percentile

ITW

96.8%

Sector Median

13.9%

Sector Avg

32.1%

Prior Period

95.1%(Apr 2026)

↑ Improving

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Deep Analysis

That figure places ITW far above its sector median of 13.9%, ranking in the 96th percentile among sector peers. No year-over-year, quarter-over-quarter, or 8-quarter trend data are available, so there is no information on whether this outlier performance is stable, improving, or deteriorating. The combination of an exceptionally high ROE with zero trend data creates uncertainty: the metric signals strong current earnings efficiency, but the absence of a track record makes it impossible to assess sustainability. This extremely high ROE would normally support a bullish view, but it directly contradicts the overall CAUTIOUS verdict if taken alone — the caution likely stems from factors not captured by this single, very favorable snapshot.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ITW?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are ITW's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: SYY (81.9%), WDC (85.9%), LVS (90.5%), IT (94.9%), KLAC (95.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.