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
Quarterly Data

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

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Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Short-term debt 4.84 3.73 3.80 2.23 2.24 2.36 0.03 0.03 0.03 0.00 0.00 11.48 9.09 8.81 8.70 4.08 5.07 4.28 4.34 4.32
Accounts payable 3.64 3.64 3.90 3.76 3.42 3.49 2.82 3.45 3.13 3.30 3.37 3.71 3.52 3.76 4.01 4.05 3.52 3.59 3.66 3.70
Accrued expenses 10.25 9.02 8.51 8.05 8.22 8.45 7.75 7.81 8.08 8.22 7.95 8.01 8.55 8.28 7.89 7.73 7.50 7.55 7.36 7.40
Cash dividends payable 2.38 2.47 2.30 2.30 2.31 2.42 2.37 2.39 2.27 2.30 2.13 2.13 2.21 2.17 1.69 1.63 1.59 1.64 1.41 1.45
Income taxes payable 0.48 0.45 0.49 0.77 0.38 0.28 1.07 0.39 0.32 0.41 0.35 0.52 0.46 0.89 0.57 0.59 0.53 0.53 0.99 1.65
Liabilities held for sale 0.00 0.00 0.00 0.00 0.00 0.00 0.28 0.30 0.47 0.64 0.61 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Current liabilities 21.58% 19.31% 19.00% 17.11% 16.58% 17.00% 14.32% 14.36% 14.30% 14.86% 14.41% 25.84% 23.82% 23.91% 22.85% 18.10% 18.19% 17.57% 17.75% 18.51%
Long-term debt 42.97 44.93 45.29 48.52 49.78 50.82 54.44 54.35 51.46 51.09 51.42 39.03 40.54 39.52 39.10 42.62 44.56 45.60 46.23 46.40
Deferred income taxes 4.07 4.08 3.96 4.07 3.77 4.49 4.74 4.91 4.43 4.79 4.50 4.74 4.75 4.62 4.54 4.26 0.98 0.69 0.76 0.78
Noncurrent income taxes payable 2.27 2.35 2.34 2.64 2.65 2.76 2.90 3.27 3.07 3.09 3.04 3.23 3.33 3.24 3.61 3.80 3.66 0.00 0.00 0.00
Other liabilities 6.55 6.82 6.81 6.75 6.84 6.87 7.07 6.97 6.64 6.32 6.26 6.28 5.64 5.57 5.50 5.46 5.26 5.33 5.28 5.34
Noncurrent liabilities 55.86% 58.18% 58.40% 61.97% 63.03% 64.95% 69.15% 69.50% 65.60% 65.29% 65.21% 53.28% 54.27% 52.94% 52.75% 56.15% 54.46% 51.62% 52.27% 52.52%
Total liabilities 77.45% 77.49% 77.40% 79.08% 79.62% 81.95% 83.47% 83.86% 79.89% 80.15% 79.62% 79.12% 78.09% 76.85% 75.60% 74.24% 72.65% 69.19% 70.02% 71.03%
Common stock, par value of $0.01 per share 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04
Additional paid-in-capital 8.91 9.13 9.00 8.80 8.72 9.01 9.23 9.25 8.65 8.60 8.36 8.19 8.43 8.10 7.93 7.55 7.26 7.40 7.51 7.62
Retained earnings 151.30 155.30 153.03 149.56 148.05 152.83 158.54 159.95 148.68 147.75 143.46 140.21 142.68 136.68 132.92 125.15 120.44 125.98 126.74 127.61
Common stock held in treasury -128.36 -131.40 -129.27 -127.03 -125.92 -131.54 -137.90 -139.09 -125.98 -124.55 -120.34 -116.87 -117.99 -111.33 -106.65 -99.33 -92.74 -94.01 -94.81 -95.76
Accumulated other comprehensive loss -9.34 -10.56 -10.21 -10.46 -10.52 -12.30 -13.38 -14.02 -11.32 -12.02 -11.17 -10.71 -11.28 -10.37 -9.86 -7.67 -7.67 -8.62 -9.52 -10.58
Stockholders’ equity attributable to ITW 22.55% 22.50% 22.59% 20.90% 20.38% 18.05% 16.53% 16.14% 20.08% 19.83% 20.35% 20.85% 21.88% 23.12% 24.38% 25.73% 27.32% 30.79% 29.96% 28.93%
Noncontrolling interest 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.03 0.03 0.03 0.03 0.03 0.03 0.02 0.02 0.02 0.02 0.02 0.03
Total stockholders’ equity 22.55% 22.51% 22.60% 20.92% 20.38% 18.05% 16.53% 16.14% 20.11% 19.85% 20.38% 20.88% 21.91% 23.15% 24.40% 25.76% 27.35% 30.81% 29.98% 28.97%
Total liabilities and stockholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

An analysis of the common-size balance sheet reveals a shifting capital structure characterized by an increase in total liabilities and a corresponding compression of total stockholders' equity over the observed period. Total liabilities rose from 71.03% in March 2017 to a peak of 83.86% in March 2020, before stabilizing at 77.45% by December 2021. This indicates a heightened reliance on debt financing relative to total assets during the middle of the period.

Debt and Liability Composition
Long-term debt represents the most significant component of the liability structure. It exhibited a fluctuating trend, declining from 46.40% in early 2017 to 39.03% by March 2019, before spiking to a high of 54.44% in June 2020. By December 2021, this figure moderated to 42.97%. Short-term debt showed extreme volatility, peaking at 11.48% in March 2019 and nearly disappearing to 0.03% by December 2019, before returning to 4.84% by the end of 2021.
Current liabilities generally increased from 18.51% in March 2017 to 21.58% in December 2021, despite a temporary sharp decline to approximately 14% during 2019. Accrued expenses remained relatively stable, fluctuating between 7.36% and 10.25%, while accounts payable stayed within a narrow range of 2.82% to 4.05%.
Noncurrent liabilities, driven largely by long-term debt and a steady increase in deferred income taxes—which rose from 0.78% in 2017 to a range of 4% to 5% starting in 2018—peaked at 69.50% in March 2020.
Stockholders' Equity Dynamics
Total stockholders' equity experienced a general downward trend, decreasing from 28.97% in March 2017 to a low of 16.14% in March 2020, followed by a partial recovery to 22.55% by December 2021.
The internal components of equity reveal a significant offset between retained earnings and treasury stock. Retained earnings grew substantially, from 127.61% in March 2017 to a peak of 159.95% in March 2020. Simultaneously, common stock held in treasury expanded from -95.76% to -139.09% in the same period. This pattern suggests an aggressive share repurchase strategy funded by accumulated earnings, which effectively reduced the total equity percentage relative to total liabilities and stockholders' equity.

The overall financial trajectory suggests a strategic increase in leverage, particularly through long-term debt and share buybacks, which reduced the equity cushion. However, the recovery of total equity from 16.14% to 22.55% between March 2020 and December 2021 indicates a move toward rebalancing the capital structure following a period of peak indebtedness.

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