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.

Current Ratio
since 2005

Microsoft Excel

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Calculation

Illinois Tool Works Inc., current ratio, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in millions


Current Assets
The current assets exhibit overall growth from 4112 million USD in 2005 to a peak of 9816 million USD in 2013, indicating a general increase in liquid and short-term assets over this period. After 2013, current assets decline to 5778 million USD by 2018, reflecting a reduction in liquidity or short-term financial resources during these years. From 2018 onwards, current assets partially recover and stabilize around 6300 to 6500 million USD by 2021.
Current Liabilities
Current liabilities show fluctuations over the period, beginning at 2001 million USD in 2005 and rising significantly to a high of 6034 million USD in 2013. This spike coincides with the peak in current assets, suggesting increased short-term obligations during this year. Following 2013, current liabilities decline considerably to approximately 2154 million USD in 2019, but then increase again to 3470 million USD by 2021. These shifts indicate variable short-term debt or obligations management across the years.
Current Ratio
The current ratio trends show considerable variability over the period analyzed. It begins at 2.06 in 2005, maintaining a generally stable ratio around 2.0 to 2.3 until 2007, then drops sharply to 1.21 by 2008, reflecting possible liquidity pressure or a rise in short-term liabilities surpassing current assets. Post-2008, there is a recovery and increase to a peak ratio of 3.0 in 2012, signaling improved liquidity and ability to cover short-term obligations. Following this peak, the ratio declines again, hovering around 1.6 to 2.4 between 2013 and 2018, and then rises to 2.9 in 2019 before settling near 1.8 by 2021. These fluctuations indicate periods of changing liquidity strength and working capital management effectiveness.
Summary of Trends
The data suggests that liquidity and short-term financial management have experienced considerable variability over the 2005 to 2021 timeframe. Both current assets and current liabilities peaked notably in 2013, followed by a decline, which affected the current ratio and demonstrated changing capabilities in meeting short-term obligations. Periods of lower current ratio, particularly in 2008 and post-2018, may warrant attention for liquidity risks. However, the overall management appears to maintain a current ratio above 1.5 in most years, implying the company generally sustains sufficient current assets to cover current liabilities.

Comparison to Competitors

Illinois Tool Works Inc., current ratio, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Capital Goods)

Illinois Tool Works Inc., current ratio, long-term trends, comparison to sector (capital goods)

Microsoft Excel

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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Industry (Industrials)

Illinois Tool Works Inc., current ratio, long-term trends, comparison to industry (industrials)

Microsoft Excel

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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).