Analysis of Debt
Total Debt (Carrying Amount)
Illinois Tool Works Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
The total debt carrying amount exhibited a non-linear trend between 2017 and 2021, fluctuating within a range of US$ 7,380 million to US$ 8,328 million. The debt profile is characterized by a heavy reliance on long-term obligations, with short-term debt contributing a smaller, albeit volatile, portion of the total liability.
- Total Debt Trajectory
- An initial decrease in total debt was observed from 2017 to 2018, falling from US$ 8,328 million to US$ 7,380 million. This was followed by a three-year period of moderate growth and subsequent contraction, with the balance rising to US$ 8,122 million by December 31, 2020, before declining to US$ 7,687 million in 2021.
- Long-Term Debt Composition
- Long-term debt remains the primary driver of the total debt carrying amount. A significant reduction occurred in 2018, where levels dropped to US$ 6,029 million. This was followed by a sharp increase in 2019 to US$ 7,754 million, remaining relatively stable through 2020 at US$ 7,772 million, and ending the period with a reduction to US$ 6,909 million in 2021.
- Short-Term Debt Volatility
- Short-term debt displayed substantial instability over the analyzed period. After peaking at US$ 1,351 million in 2018, short-term debt experienced a near-total elimination in 2019, dropping to US$ 4 million. From 2020 onward, a recovery trend is observed, with short-term obligations increasing to US$ 350 million and subsequently to US$ 778 million by the end of 2021.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Total Debt (Fair Value)
| Dec 31, 2021 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Commercial paper | 210) |
| Bank overdrafts | —) |
| Long-term debt, including current maturities | 8,296) |
| Total debt (fair value) | 8,506) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.11 |
Based on: 10-K (reporting date: 2021-12-31).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on debt: 2.54%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 0.10% | 210) | —) | |
| 1.86% | 570) | 11) | |
| 1.35% | 578) | 8) | |
| 3.54% | 734) | 26) | |
| 0.31% | 688) | 2) | |
| 2.69% | 1,053) | 28) | |
| 0.71% | 577) | 4) | |
| 2.18% | 641) | 14) | |
| 1.09% | 587) | 6) | |
| 3.13% | 711) | 22) | |
| 4.97% | 863) | 43) | |
| 3.96% | 1,291) | 51) | |
| Total | 8,503) | 216) | |
| 2.54% | |||
Based on: 10-K (reporting date: 2021-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 216 ÷ 8,503 = 2.54%