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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.

Common-Size Balance Sheet: Assets

Illinois Tool Works Inc., common-size consolidated balance sheet: assets

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Cash and equivalents 9.50 16.42 13.15 10.11 18.44
Trade receivables 17.66 16.05 16.33 17.63 15.66
Inventories 10.54 7.62 7.72 8.86 7.27
Value-added-tax receivables 0.52 0.46 0.48 0.53 0.42
Vendor advances 0.44 0.19 0.17 0.20 0.15
Income tax refunds receivable 0.11 0.28 0.51 0.66 0.72
Other 0.87 0.76 0.80 0.85 0.71
Prepaid expenses and other current assets 1.95% 1.69% 1.96% 2.25% 2.00%
Assets held for sale 0.00 0.00 2.33 0.00 0.00
Current assets 39.65% 41.78% 41.50% 38.86% 43.37%
Net plant and equipment 11.25 11.38 11.47 12.04 10.60
Goodwill 30.88 30.04 29.81 31.16 28.32
Intangible assets 6.05 5.00 5.65 7.29 7.58
Deferred income taxes 3.43 3.41 3.42 3.73 3.01
Prepaid pension assets 2.89 2.27 1.97 1.95 2.01
Cash surrender value of life insurance policies 2.79 2.91 2.93 2.89 2.63
Operating lease right-of-use assets 1.38 1.38 1.37 0.00 0.00
Customer tooling 0.96 1.02 0.94 1.15 1.10
Other 0.72 0.79 0.94 0.94 1.38
Other assets 8.74% 8.38% 8.14% 6.93% 7.12%
Noncurrent assets 60.35% 58.22% 58.50% 61.14% 56.63%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

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 asset structure of the organization exhibits relative stability between 2017 and 2021, with a consistent distribution between current and noncurrent assets. Current assets generally fluctuate around 40% of total assets, while noncurrent assets maintain a dominant position, averaging approximately 60% of the total asset base.

Liquidity and Working Capital Trends
Cash and equivalents demonstrate significant volatility, starting at 18.44% in 2017, declining to 10.11% in 2018, peaking again at 16.42% in 2020, and reaching a period low of 9.50% by 2021. Trade receivables have remained stable, oscillating within a narrow band between 15.66% and 17.66%, suggesting consistent credit management practices. A notable increase in inventory levels is observed in 2021, where it rose to 10.54% from a prior range of 7.27% to 8.86%, indicating a potential shift in supply chain strategy or an increase in anticipated demand.
Fixed and Long-term Asset Composition
Net plant and equipment represent a steady portion of the balance sheet, maintaining a range between 10.60% and 12.04% throughout the period. Operating lease right-of-use assets appeared in 2019 at 1.37% and remained constant through 2021, reflecting accounting changes or new lease agreements. Other noncurrent assets, including prepaid pension assets and the cash surrender value of life insurance policies, have remained marginal and stable, collectively contributing less than 6% to total assets.
Intangible Assets and Strategic Valuation
Goodwill constitutes the largest single component of the asset base, consistently accounting for approximately 30% of total assets. This high and stable percentage suggests a historical growth strategy driven by acquisitions. Intangible assets showed a gradual decline from 7.58% in 2017 to a low of 5.00% in 2020, followed by a moderate recovery to 6.05% in 2021, likely reflecting the amortization of acquired intangible assets over time.
Overall Asset Distribution
The balance sheet is characterized by a heavy weighting toward noncurrent assets, which peaked at 61.14% in 2018. The interplay between decreasing cash reserves and increasing inventory in 2021 suggests a reallocation of current assets toward operational buffers. The persistence of goodwill as a primary asset indicates that a substantial portion of the company's value is tied to acquired synergies and brand premiums rather than tangible physical infrastructure.

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