Stock Analysis on Net
Stock Analysis on Net

Illinois Tool Works Inc. (NYSE:ITW)

$22.49

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

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Illinois Tool Works Inc., consolidated cash flow statement

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net income
Depreciation
Amortization and impairment of intangible assets
Change in deferred income taxes
Provision for uncollectible accounts
Income from investments
(Gain) loss on sale of plant and equipment
(Gain) loss on sale of operations and affiliates
Stock-based compensation expense
Other non-cash items, net
(Increase) decrease in trade receivables
(Increase) decrease in inventories
(Increase) decrease in prepaid expenses and other assets
Increase (decrease) in accounts payable
Increase (decrease) in accrued expenses and other liabilities
Increase (decrease) in income taxes
Other, net
Change in assets and liabilities, net of acquisitions and divestitures
Adjustments to reconcile net income to cash provided by operating activities
Net cash provided by operating activities
Acquisition of businesses, excluding cash and equivalents
Additions to plant and equipment
Proceeds from investments
Proceeds from sale of plant and equipment
Proceeds from sale of operations and affiliates
Other, net
Net cash used for investing activities
Cash dividends paid
Issuance of common stock
Repurchases of common stock
Net proceeds from (repayments of) debt with original maturities of three months or less
Proceeds from debt with original maturities of more than three months
Repayments of debt with original maturities of more than three months
Other, net
Net cash used for financing activities
Effect of exchange rate changes on cash and equivalents
Cash and equivalents, increase (decrease) during the year
Cash and equivalents, beginning of year
Cash and equivalents, end of year

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).

Net income
Net income exhibited a generally positive trend with a notable increase from 1687 million USD in 2017 to 2694 million USD in 2021, despite a dip observed in 2020 where income decreased to 2109 million USD from previous years.
Depreciation
Depreciation expenses remained relatively stable throughout the period, slightly increasing from 256 million USD in 2017 to 277 million USD in 2021.
Amortization and impairment of intangible assets
Amortization and impairment showed a declining trend, decreasing from 206 million USD in 2017 to 133 million USD in 2021, indicating potentially lower intangible asset write-downs or amortization over time.
Change in deferred income taxes
This item reversed from positive values in 2017-2019 to negative values in 2020 and 2021, shifting from 64 million USD in 2017 to -148 million USD by 2021, signaling changes in tax-related timing or adjustments.
Provision for uncollectible accounts
The provision remained low and relatively stable, fluctuating between 3 and 7 million USD, with a reduction back to 3 million USD in 2021 after reaching a peak of 7 million USD in 2020.
Income from investments
Income from investments was consistently negative throughout the years, ranging from -16 million USD in 2017 to -29 million USD in 2021, suggesting ongoing costs or losses from investment activities.
Gains or losses on sale of plant and equipment
There were gains reported in most years except in 2020, where a small loss of 2 million USD was recorded. The amounts were generally minor relative to other line items.
Gains or losses on sale of operations and affiliates
This item showed variability with a significant gain of 44 million USD in 2019 but was absent or minimal in other years.
Stock-based compensation expense
Compensation expenses increased gradually from 36 million USD in 2017 to 53 million USD in 2021, indicating a growing cost related to equity-based incentives.
Other non-cash items, net
This category was relatively stable, fluctuating minimally between 8 and 13 million USD over the period.
Changes in working capital (trade receivables, inventories, prepaid expenses, accounts payable, accrued expenses, and taxes)

Variability in working capital items was notable. Trade receivables decreased significantly in 2021 by 240 million USD after a positive increase in 2020. Inventories decreased sharply by 450 million USD in 2021, reversing prior smaller fluctuations. Prepaid expenses and other assets showed inconsistent changes, including a negative shift in 2021.

Accounts payable and accrued expenses showed positive movement in 2021 with increases of 37 million USD and a marked 202 million USD, respectively, following fluctuations in previous years. Income tax accruals showed minor increases in recent years after a negative swing in 2018.

Change in assets and liabilities, net of acquisitions and divestitures
This metric fluctuated considerably, ending in a significant negative change of 439 million USD in 2021 after a positive impact in 2020.
Adjustments to reconcile net income to cash provided by operating activities
Adjustments showed wide variability, with a negative figure of -137 million USD in 2021 following higher adjustments in previous years, suggesting changes in non-cash items impacting operating cash flow reconciliation.
Net cash provided by operating activities
Operating cash flow remained robust throughout the period, peaking in 2019 at 2995 million USD before declining to 2557 million USD in 2021, reflecting resilience despite fluctuations in net income.
Investing activities

Investments in acquisitions were sporadic but significant in 2021 with a large cash outflow of 731 million USD. Additions to plant and equipment fluctuated with a moderate rise in 2021 compared to 2020.

Proceeds from sales of assets and operations varied with a notable spike in 2019 from sales of operations and affiliates. Net cash used in investing activities jumped substantially in 2021 to -984 million USD from relatively stable lower outflows in prior years.

Financing activities

Cash dividends steadily increased from 941 million USD in 2017 to 1463 million USD in 2021, indicating growing shareholder returns. Stock repurchases showed variability, with high levels in 2017 and 2018 (up to 2000 million USD repurchased) but lesser amounts in later years.

Issuance of common stock showed moderate activity with declining proceeds over time. Debt activities revealed mixed patterns, including issuance in 2019 and repayments in several years, with net financing cash outflows increasing to -2564 million USD in 2021.

Effect of exchange rate changes on cash and equivalents
Exchange rate effects on cash fluctuated, with gains in some years (notably 145 million USD in 2017) and losses or minor gains in others, ending with a negative impact of 46 million USD in 2021.
Cash and equivalents
Cash and equivalents experienced fluctuations, decreasing substantially in 2018 and again in 2021, with the year-end balance dropping from 3094 million USD in 2017 to 1527 million USD in 2021 after peaking at 2564 million USD in 2020, indicating variability in liquidity management.