Stock Analysis on Net

Illinois Tool Works Inc. (NYSE:ITW)

This company has been moved to the archive! The financial data has not been updated since February 11, 2022.

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

Illinois Tool Works Inc., balance sheet: property, plant and equipment

US$ in millions

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Land 198 204 186 194 203
Buildings and improvements 1,462 1,432 1,357 1,368 1,370
Machinery and equipment 3,898 3,824 3,551 3,517 3,465
Construction in progress 142 133 133 154 123
Gross plant and equipment 5,700 5,593 5,227 5,233 5,161
Accumulated depreciation (3,891) (3,816) (3,498) (3,442) (3,383)
Net plant and equipment 1,809 1,777 1,729 1,791 1,778

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).

Item Description The company
Gross plant and equipment Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Illinois Tool Works Inc. gross plant and equipment increased from 2019 to 2020 and from 2020 to 2021.
Net plant and equipment Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Illinois Tool Works Inc. net plant and equipment increased from 2019 to 2020 and from 2020 to 2021.

Asset Age Ratios (Summary)

Illinois Tool Works Inc., asset age ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Average age ratio 70.72% 70.81% 69.39% 68.31% 68.23%
Estimated total useful life (years) 20 20 19 19 19
Estimated age, time elapsed since purchase (years) 14 14 13 13 13
Estimated remaining life (years) 6 6 6 6 6

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).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Illinois Tool Works Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Illinois Tool Works Inc. estimated total useful life of depreciable property, plant and equipment increased from 2019 to 2020 and from 2020 to 2021.
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Illinois Tool Works Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2019 to 2020 and from 2020 to 2021.
Estimated remaining life Illinois Tool Works Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Average Age

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Accumulated depreciation 3,891 3,816 3,498 3,442 3,383
Gross plant and equipment 5,700 5,593 5,227 5,233 5,161
Land 198 204 186 194 203
Asset Age Ratio
Average age1 70.72% 70.81% 69.39% 68.31% 68.23%

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).

2021 Calculations

1 Average age = 100 × Accumulated depreciation ÷ (Gross plant and equipment – Land)
= 100 × 3,891 ÷ (5,700198) = 70.72%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Illinois Tool Works Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Estimated Total Useful Life

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Gross plant and equipment 5,700 5,593 5,227 5,233 5,161
Land 198 204 186 194 203
Depreciation expense 277 273 267 272 256
Asset Age Ratio (Years)
Estimated total useful life1 20 20 19 19 19

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).

2021 Calculations

1 Estimated total useful life = (Gross plant and equipment – Land) ÷ Depreciation expense
= (5,700198) ÷ 277 = 20

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Illinois Tool Works Inc. estimated total useful life of depreciable property, plant and equipment increased from 2019 to 2020 and from 2020 to 2021.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Accumulated depreciation 3,891 3,816 3,498 3,442 3,383
Depreciation expense 277 273 267 272 256
Asset Age Ratio (Years)
Time elapsed since purchase1 14 14 13 13 13

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).

2021 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 3,891 ÷ 277 = 14

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Illinois Tool Works Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2019 to 2020 and from 2020 to 2021.

Estimated Remaining Life

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net plant and equipment 1,809 1,777 1,729 1,791 1,778
Land 198 204 186 194 203
Depreciation expense 277 273 267 272 256
Asset Age Ratio (Years)
Estimated remaining life1 6 6 6 6 6

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).

2021 Calculations

1 Estimated remaining life = (Net plant and equipment – Land) ÷ Depreciation expense
= (1,809198) ÷ 277 = 6

Asset age ratio Description The company
Estimated remaining life Illinois Tool Works Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.