Stock Analysis on Net
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.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Illinois Tool Works Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Short-term debt 4.84 2.24 0.03 9.09 5.07
Accounts payable 3.64 3.42 3.13 3.52 3.52
Compensation and employee benefits 2.86 2.15 2.22 2.63 2.45
Deferred revenue and customer deposits 2.45 1.42 1.25 1.45 1.22
Rebates 1.30 1.10 1.06 1.16 0.88
Current portion of operating lease liabilities 0.38 0.35 0.34 0.00 0.00
Warranties 0.29 0.29 0.30 0.30 0.27
Current portion of pension and other postretirement benefit obligations 0.09 0.09 0.09 0.11 0.10
Other 2.89 2.83 2.82 2.91 2.59
Accrued expenses 10.25% 8.22% 8.08% 8.55% 7.50%
Cash dividends payable 2.38 2.31 2.27 2.21 1.59
Income taxes payable 0.48 0.38 0.32 0.46 0.53
Liabilities held for sale 0.00 0.00 0.47 0.00 0.00
Current liabilities 21.58% 16.58% 14.30% 23.82% 18.19%
Long-term debt 42.97 49.78 51.46 40.54 44.56
Deferred income taxes 4.07 3.77 4.43 4.75 0.98
Noncurrent income taxes payable 2.27 2.65 3.07 3.33 3.66
Pension benefit obligation 1.46 1.54 1.43 1.37 1.31
Postretirement benefit obligation 0.92 1.22 1.31 1.20 1.04
Long-term portion of operating lease liabilities 0.83 0.85 0.85 0.00 0.00
Other 3.34 3.22 3.05 3.07 2.91
Other liabilities 6.55% 6.84% 6.64% 5.64% 5.26%
Noncurrent liabilities 55.86% 63.03% 65.60% 54.27% 54.46%
Total liabilities 77.45% 79.62% 79.89% 78.09% 72.65%
Common stock, par value of $0.01 per share 0.04 0.04 0.04 0.04 0.04
Additional paid-in-capital 8.91 8.72 8.65 8.43 7.26
Retained earnings 151.30 148.05 148.68 142.68 120.44
Common stock held in treasury -128.36 -125.92 -125.98 -117.99 -92.74
Accumulated other comprehensive loss -9.34 -10.52 -11.32 -11.28 -7.67
Stockholders’ equity attributable to ITW 22.55% 20.38% 20.08% 21.88% 27.32%
Noncontrolling interest 0.01 0.01 0.03 0.03 0.02
Total stockholders’ equity 22.55% 20.38% 20.11% 21.91% 27.35%
Total liabilities and stockholders’ equity 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 capital structure exhibits a consistent reliance on debt, with total liabilities increasing from 72.65% of total liabilities and stockholders' equity in 2017 to 77.45% by 2021. This trend peaked in 2019 at 79.89%, indicating a period of heightened leverage before a slight moderation in the final two years of the period.

Debt Profile and Noncurrent Liabilities
Long-term debt represents the most significant component of the liability structure, fluctuating between a low of 40.54% in 2018 and a high of 51.46% in 2019. Noncurrent liabilities followed a similar trajectory, peaking at 65.60% in 2019 before receding to 55.86% in 2021. Short-term debt remained volatile, dropping to a negligible 0.03% in 2019 before rising back to 4.84% in 2021.
Current Liability Dynamics
Current liabilities showed significant variance, reaching 23.82% in 2018 and dipping to 14.30% in 2019. Accrued expenses emerged as a growing component of current obligations, rising from 7.50% in 2017 to 10.25% in 2021. Accounts payable and deferred revenue remained relatively stable, though deferred revenue and customer deposits nearly doubled from 1.22% in 2017 to 2.45% in 2021.
Stockholders' Equity and Treasury Activity
Total stockholders' equity declined from 27.35% in 2017 to 22.55% in 2021. This contraction is driven by an aggressive share repurchase strategy, evidenced by the common stock held in treasury increasing from -92.74% to -128.36% of the total balance sheet. This treasury activity effectively offsets the substantial growth in retained earnings, which climbed from 120.44% in 2017 to 151.30% in 2021.
Other Comprehensive Items
Accumulated other comprehensive loss remained a persistent negative factor, ranging from -7.67% in 2017 to a peak loss of -11.32% in 2019, before recovering slightly to -9.34% in 2021. Noncontrolling interest remained marginal throughout the entire period, staying below 0.03%.

Overall, the financial position is characterized by a strategic use of high leverage and substantial share buybacks, resulting in a balance sheet where retained earnings are heavily neutralized by treasury stock, and the majority of funding is derived from long-term debt obligations.

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