Name: Illinois Tool Works Inc. (NYSE:ITW) | Balance Sheet: Assets
Creator: Stock Analysis on Net

Balance Sheet: Assets

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

Assets: Selected Items

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Current Assets: Selected Items

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Illinois Tool Works Inc., consolidated balance sheet: assets

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Cash and equivalents	1,527)	2,564)	1,981)	1,504)	3,094)
Trade receivables	2,840)	2,506)	2,461)	2,622)	2,628)
Inventories	1,694)	1,189)	1,164)	1,318)	1,220)
Value-added-tax receivables	84)	72)	73)	79)	70)
Vendor advances	71)	30)	25)	30)	26)
Income tax refunds receivable	18)	43)	77)	98)	121)
Other	140)	119)	121)	127)	119)
Prepaid expenses and other current assets	313)	264)	296)	334)	336)
Assets held for sale	—)	—)	351)	—)	—)
Current assets	6,374)	6,523)	6,253)	5,778)	7,278)
Net plant and equipment	1,809)	1,777)	1,729)	1,791)	1,778)
Goodwill	4,965)	4,690)	4,492)	4,633)	4,752)
Intangible assets	972)	781)	851)	1,084)	1,272)
Deferred income taxes	552)	533)	516)	554)	505)
Prepaid pension assets	465)	355)	297)	290)	337)
Cash surrender value of life insurance policies	449)	454)	441)	429)	442)
Operating lease right-of-use assets	222)	216)	206)	—)	—)
Customer tooling	154)	160)	141)	171)	184)
Other	115)	123)	142)	140)	232)
Other assets	1,405)	1,308)	1,227)	1,030)	1,195)
Noncurrent assets	9,703)	9,089)	8,815)	9,092)	9,502)
Total assets	16,077)	15,612)	15,068)	14,870)	16,780)

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).

Total assets exhibited a volatile trajectory between 2017 and 2021, starting at 16,780 million US$ and concluding the period at 16,077 million US$. A notable contraction occurred in 2018, where assets fell to 14,870 million US$, followed by a period of gradual recovery over the subsequent three years.

Liquidity and Current Asset Trends: Current assets decreased from 7,278 million US$ in 2017 to 6,374 million US$ in 2021. This decline was primarily driven by significant fluctuations in cash and equivalents, which dropped from 3,094 million US$ in 2017 to 1,504 million US$ in 2018, rebounded to 2,564 million US$ by 2020, and fell again to 1,527 million US$ in 2021. In contrast, inventories showed a marked increase toward the end of the period, rising from 1,189 million US$ in 2020 to 1,694 million US$ in 2021, suggesting a shift in working capital allocation or a response to supply chain adjustments.
Trade and Other Receivables: Trade receivables remained relatively stable, fluctuating between 2,461 million US$ and 2,840 million US$ throughout the five-year span. Income tax refunds receivable showed a consistent downward trend, diminishing from 121 million US$ in 2017 to 18 million US$ in 2021.
Noncurrent Asset Composition: Noncurrent assets reached 9,703 million US$ by 2021, recovering from a low of 8,815 million US$ in 2019. Net plant and equipment demonstrated high stability, maintaining a range between 1,729 million US$ and 1,809 million US$. Goodwill experienced a slight dip mid-period before increasing to 4,965 million US$ in 2021, the highest level in the analyzed period.
Intangible and Other Long-term Assets: Intangible assets followed a downward trend from 1,272 million US$ in 2017 to a low of 781 million US$ in 2020, before recovering to 972 million US$ in 2021. Prepaid pension assets showed a general upward trend in the later years, increasing from 290 million US$ in 2018 to 465 million US$ in 2021. The introduction of operating lease right-of-use assets starting in 2019, peaking at 222 million US$ in 2021, reflects changes in accounting standards or leasing strategies.

The overall asset structure indicates a stable core of fixed assets and goodwill, contrasted by significant volatility in liquid cash reserves and a recent increase in inventory levels. The recovery of total assets since 2018 suggests a stabilization of the balance sheet, though the distribution of current assets has shifted toward less liquid components by 2021.

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