Selected Financial Data
since 2005
Income Statement
Illinois Tool Works Inc., selected items from income statement, long-term trends
US$ in millions
| 12 months ended: | Operating revenue | Operating income | Net income |
|---|---|---|---|
| Dec 31, 2021 | 14,455) | 3,477) | 2,694) |
| Dec 31, 2020 | 12,574) | 2,882) | 2,109) |
| Dec 31, 2019 | 14,109) | 3,402) | 2,521) |
| Dec 31, 2018 | 14,768) | 3,584) | 2,563) |
| Dec 31, 2017 | 14,314) | 3,494) | 1,687) |
| Dec 31, 2016 | 13,599) | 3,064) | 2,035) |
| Dec 31, 2015 | 13,405) | 2,867) | 1,899) |
| Dec 31, 2014 | 14,484) | 2,888) | 2,946) |
| Dec 31, 2013 | 14,135) | 2,514) | 1,679) |
| Dec 31, 2012 | 17,924) | 2,847) | 2,870) |
| Dec 31, 2011 | 17,787) | 2,731) | 2,071) |
| Dec 31, 2010 | 15,870) | 2,357) | 1,527) |
| Dec 31, 2009 | 13,877) | 1,386) | 947) |
| Dec 31, 2008 | 15,869) | 2,338) | 1,519) |
| Dec 31, 2007 | 16,171) | 2,624) | 1,870) |
| Dec 31, 2006 | 14,055) | 2,421) | 1,718) |
| Dec 31, 2005 | 12,922) | 2,259) | 1,495) |
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).
The financial performance from 2005 to 2021 is characterized by a decoupling of revenue growth and operational profitability. While top-line figures exhibited significant volatility and a general plateau after 2012, operating income showed a sustained long-term upward trajectory, indicating an increase in operational efficiency and margin expansion.
- Revenue Trajectory
- Operating revenue grew from 12,922 million USD in 2005 to a peak of 17,924 million USD in 2012. This was followed by a sharp contraction in 2013 to 14,135 million USD. Between 2014 and 2020, revenue remained largely range-bound between 12,574 million USD and 14,768 million USD, before recovering to 14,455 million USD in 2021.
- Operational Performance
- Operating income demonstrated greater resilience than revenue. Despite a significant dip in 2009 to 1,386 million USD, the figure grew steadily from 2010 onwards, reaching a peak of 3,584 million USD in 2018. The ability to increase operating income while revenue declined or plateaued suggests a successful focus on cost management or a shift toward higher-margin product mixes.
- Net Income Variability
- Net income displayed the highest level of volatility among the measured metrics. Notable fluctuations occurred, such as the drop to 947 million USD in 2009 and the peak of 2,946 million USD in 2014. While net income ended the period higher than it began, the variance between operating income and net income indicates the influence of non-operating items, such as tax adjustments or one-time financial events.
- Profitability Trends
- A long-term expansion in operating margins is evident. In 2005, the operating margin was approximately 17.5%, whereas by 2018 and 2021, this ratio improved to approximately 24%. Similarly, the net profit margin increased from 11.6% in 2005 to 18.6% in 2021, confirming a systemic increase in the company's ability to convert revenue into profit.
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Balance Sheet: Assets
Illinois Tool Works Inc., selected items from assets, long-term trends
US$ in millions
| Current assets | Total assets | |
|---|---|---|
| Dec 31, 2021 | 6,374) | 16,077) |
| Dec 31, 2020 | 6,523) | 15,612) |
| Dec 31, 2019 | 6,253) | 15,068) |
| Dec 31, 2018 | 5,778) | 14,870) |
| Dec 31, 2017 | 7,278) | 16,780) |
| Dec 31, 2016 | 6,123) | 15,201) |
| Dec 31, 2015 | 6,720) | 15,729) |
| Dec 31, 2014 | 8,076) | 17,678) |
| Dec 31, 2013 | 9,816) | 19,966) |
| Dec 31, 2012 | 7,960) | 19,309) |
| Dec 31, 2011 | 6,849) | 17,984) |
| Dec 31, 2010 | 5,968) | 16,250) |
| Dec 31, 2009 | 5,675) | 16,082) |
| Dec 31, 2008 | 5,924) | 15,213) |
| Dec 31, 2007 | 6,166) | 15,526) |
| Dec 31, 2006 | 5,206) | 13,880) |
| Dec 31, 2005 | 4,112) | 11,446) |
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).
The financial trajectory of the asset base from 2005 to 2021 is characterized by a period of expansion followed by a corrective phase and subsequent stabilization. Total assets experienced a long-term growth trend for the first eight years of the period, reaching a peak in 2013 before entering a more volatile cycle of contraction and moderate recovery.
- Current Asset Trends
- Current assets exhibited significant volatility, growing from 4,112 million USD in 2005 to a peak of 9,816 million USD in 2013. This growth was interrupted by a brief decline during the 2008-2009 period. Following the 2013 peak, a notable reduction occurred between 2014 and 2016, with values falling to 6,123 million USD. After a temporary spike in 2017, current assets declined again in 2018 to 5,778 million USD, eventually stabilizing between 6,253 million USD and 6,523 million USD from 2019 through 2021.
- Total Asset Evolution
- Total assets followed a similar growth trajectory to current assets, rising steadily from 11,446 million USD in 2005 to a maximum of 19,966 million USD in 2013. A contraction phase began in 2014, with total assets decreasing to 15,201 million USD by 2016. A sharp fluctuation is observed between 2017 and 2018, where assets rose to 16,780 million USD before dropping to a period low of 14,870 million USD. The final three years of the observed period show a gradual recovery, ending at 16,077 million USD in 2021.
- Asset Composition and Structural Observations
- The proportion of current assets relative to total assets shifted over time. In 2005, current assets represented approximately 36% of the total asset base. This concentration increased significantly by 2013, where current assets accounted for nearly 49% of total assets, suggesting a period of increased liquidity or higher working capital requirements. By 2021, this ratio returned to approximately 40%, indicating a reversion toward the historical asset structure.
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Balance Sheet: Liabilities and Stockholders’ Equity
Illinois Tool Works Inc., selected items from liabilities and stockholders’ equity, long-term trends
US$ in millions
| Current liabilities | Total liabilities | Total debt | Stockholders’ equity attributable to ITW | |
|---|---|---|---|---|
| Dec 31, 2021 | 3,470) | 12,451) | 7,687) | 3,625) |
| Dec 31, 2020 | 2,589) | 12,430) | 8,122) | 3,181) |
| Dec 31, 2019 | 2,154) | 12,038) | 7,758) | 3,026) |
| Dec 31, 2018 | 3,542) | 11,612) | 7,380) | 3,254) |
| Dec 31, 2017 | 3,053) | 12,191) | 8,328) | 4,585) |
| Dec 31, 2016 | 2,760) | 10,942) | 7,829) | 4,254) |
| Dec 31, 2015 | 2,368) | 10,501) | 7,422) | 5,224) |
| Dec 31, 2014 | 3,533) | 10,854) | 7,457) | 6,819) |
| Dec 31, 2013 | 6,034) | 10,257) | 6,344) | 9,703) |
| Dec 31, 2012 | 2,651) | 8,739) | 5,048) | 10,561) |
| Dec 31, 2011 | 2,977) | 7,949) | 3,990) | 10,018) |
| Dec 31, 2010 | 3,094) | 6,869) | 2,830) | 9,370) |
| Dec 31, 2009 | 2,836) | 7,264) | 3,129) | 8,808) |
| Dec 31, 2008 | 4,876) | 7,550) | 3,677) | 7,663) |
| Dec 31, 2007 | 2,960) | 6,175) | 2,299) | 9,351) |
| Dec 31, 2006 | 2,637) | 4,863) | 1,418) | 9,018) |
| Dec 31, 2005 | 2,001) | 3,899) | 1,211) | 7,547) |
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).
The financial trajectory from 2005 to 2021 is characterized by a substantial expansion of the liability base coupled with a significant contraction in stockholders' equity during the latter half of the period. While total liabilities grew steadily, the composition of the balance sheet shifted toward higher leverage.
- Liability Trends and Debt Accumulation
- Total liabilities exhibited a consistent upward trend, increasing from 3,899 million US$ in 2005 to 12,451 million US$ by 2021. A significant driver of this increase was total debt, which grew from 1,211 million US$ in 2005 to a peak of 8,328 million US$ in 2017, before stabilizing around 7,687 million US$ in 2021. This represents a substantial increase in the company's long-term funding requirements over the sixteen-year period.
- Current Liability Volatility
- Current liabilities demonstrated higher volatility compared to total liabilities. Notable spikes occurred in 2008 (4,876 million US$) and 2013 (6,034 million US$), suggesting periods of increased short-term obligations or changes in working capital management. Following the 2013 peak, current liabilities generally trended downward and stabilized between 2,154 million US$ and 3,470 million US$ from 2015 to 2021.
- Stockholders' Equity Erosion
- Stockholders' equity attributable to ITW followed a bifurcated trend. From 2005 to 2012, equity grew from 7,547 million US$ to a peak of 10,561 million US$. However, a sharp and sustained decline began after 2012, with equity falling to 3,026 million US$ by 2019. Although a modest recovery occurred by 2021, reaching 3,625 million US$, the equity base remained significantly lower than its mid-period peak.
- Capital Structure Shift
- The simultaneous increase in total debt and the decrease in stockholders' equity indicates a fundamental shift in the capital structure. In 2005, the ratio of total debt to stockholders' equity was approximately 0.16; by 2021, this ratio increased to approximately 2.12. This trend suggests an aggressive move toward a more leveraged balance sheet, potentially driven by capital return programs such as share repurchases or dividend payments that exceeded retained earnings.
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Cash Flow Statement
Illinois Tool Works Inc., selected items from cash flow statement, long-term trends
US$ in millions
| 12 months ended: | Net cash provided by operating activities | Net cash (used for) provided by investing activities | Net cash used for financing activities |
|---|---|---|---|
| Dec 31, 2021 | 2,557) | (984) | (2,564) |
| Dec 31, 2020 | 2,807) | (214) | (2,049) |
| Dec 31, 2019 | 2,995) | (183) | (2,326) |
| Dec 31, 2018 | 2,811) | (325) | (3,964) |
| Dec 31, 2017 | 2,402) | (251) | (1,674) |
| Dec 31, 2016 | 2,302) | (532) | (2,255) |
| Dec 31, 2015 | 2,299) | (210) | (2,526) |
| Dec 31, 2014 | 1,616) | 2,842) | (3,551) |
| Dec 31, 2013 | 2,528) | (456) | (1,140) |
| Dec 31, 2012 | 2,072) | 1,047) | (1,571) |
| Dec 31, 2011 | 1,956) | (1,579) | (321) |
| Dec 31, 2010 | 1,561) | (607) | (1,048) |
| Dec 31, 2009 | 2,147) | (504) | (1,250) |
| Dec 31, 2008 | 2,223) | (1,756) | (462) |
| Dec 31, 2007 | 2,484) | (924) | (1,390) |
| Dec 31, 2006 | 2,066) | (1,274) | (575) |
| Dec 31, 2005 | 1,847) | (784) | (1,266) |
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).
The cash flow profile from 2005 to 2021 reflects a consistent ability to generate positive cash flow from core operations, which has been utilized to fund investment activities and return capital to shareholders through financing activities.
- Operating Cash Flow Trends
- Net cash provided by operating activities exhibited a general upward trajectory, growing from US$ 1,847 million in 2005 to a peak of US$ 2,995 million in 2019. While periodic fluctuations occurred—most notably in 2010 and 2014—the operating cash flow remained positive throughout the entire period, demonstrating stable internal liquidity generation.
- Investing Activity Patterns
- Investing activities were characterized by consistent net outflows, typical of capital expenditure and strategic investments, with the exception of significant positive inflows in 2012 (US$ 1,047 million) and 2014 (US$ 2,842 million). These anomalies suggest substantial asset divestitures or the liquidation of investments during those specific years. From 2015 onward, investing outflows became more moderated and consistent, typically ranging between US$ 183 million and US$ 984 million.
- Financing Activity Analysis
- Net cash used in financing activities remained negative for every year in the analyzed period, indicating a continuous outflow of cash to shareholders or creditors. Significant increases in financing outflows were observed in 2014 (US$ 3,551 million) and 2018 (US$ 3,964 million), suggesting aggressive share repurchase programs, dividend payments, or debt repayments. The magnitude of these outflows frequently exceeded the cash utilized for investing activities, highlighting a strategic prioritization of capital return.
- Integrated Cash Flow Dynamics
- The relationship between the three cash flow components indicates a sustainable financial model where operating cash flows, occasionally supplemented by investing inflows (most prominently in 2014), provided the necessary capital to support both business reinvestment and substantial financing distributions. The consistent negative financing cash flow relative to the positive operating cash flow suggests a disciplined and aggressive approach to capital allocation and shareholder value return.
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Per Share Data
Illinois Tool Works Inc., selected data per share, long-term trends
US$
| 12 months ended: | Basic earnings per share 1 | Diluted earnings per share 2 | Dividend per share 3 |
|---|---|---|---|
| Dec 31, 2021 | 8.55 | 8.51 | 4.72 |
| Dec 31, 2020 | 6.66 | 6.63 | 4.42 |
| Dec 31, 2019 | 7.78 | 7.74 | 4.14 |
| Dec 31, 2018 | 7.65 | 7.60 | 3.56 |
| Dec 31, 2017 | 4.90 | 4.86 | 2.86 |
| Dec 31, 2016 | 5.73 | 5.70 | 2.40 |
| Dec 31, 2015 | 5.16 | 5.13 | 2.07 |
| Dec 31, 2014 | 7.33 | 7.28 | 1.81 |
| Dec 31, 2013 | 3.76 | 3.74 | 1.60 |
| Dec 31, 2012 | 6.11 | 6.06 | 1.48 |
| Dec 31, 2011 | 4.21 | 4.19 | 1.40 |
| Dec 31, 2010 | 3.05 | 3.03 | 1.30 |
| Dec 31, 2009 | 1.89 | 1.89 | 1.24 |
| Dec 31, 2008 | 2.93 | 2.91 | 1.18 |
| Dec 31, 2007 | 3.39 | 3.36 | 0.98 |
| Dec 31, 2006 | 3.04 | 3.01 | 0.75 |
| Dec 31, 2005 | 2.62 | 2.60 | 0.61 |
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, 2, 3 Data adjusted for splits and stock dividends.
The financial performance from 2005 through 2021 is characterized by a long-term upward trajectory in both earnings and shareholder distributions, despite periodic volatility in net income. While earnings per share experienced cyclical fluctuations, the dividend per share exhibited a consistent and uninterrupted growth pattern.
- Earnings Per Share (EPS) Trends
- Basic and diluted earnings per share grew significantly over the analyzed period, with basic EPS increasing from 2.62 USD in 2005 to 8.55 USD in 2021. This growth was not linear, as several notable contractions occurred. A significant decline is observed between 2007 and 2009, where basic EPS fell from 3.39 USD to a period low of 1.89 USD. Subsequent recoveries led to peaks in 2012 (6.11 USD) and 2014 (7.33 USD), followed by further volatility in 2015 and 2017. A final cyclical dip occurred in 2020 (6.66 USD) before reaching the period high in 2021.
- Dividend Growth Analysis
- Dividend per share demonstrated a remarkably stable and consistent increase every year without exception. Starting at 0.61 USD in 2005, the dividend grew to 4.72 USD by 2021. This represents a steady compounding growth rate that remained decoupled from the volatility seen in annual earnings, indicating a disciplined capital return policy.
- Earnings Volatility vs. Dividend Stability
- A divergence is evident between the volatility of earnings and the stability of dividend payments. During periods of earnings contraction—specifically in 2009, 2013, 2015, and 2020—dividend payments continued to rise. This pattern suggests that dividend policy is based on long-term earnings capacity rather than short-term annual fluctuations.
- Dilution Impact
- The variance between basic and diluted earnings per share remained minimal throughout the entire 16-year period. The narrow gap indicates that the impact of potentially dilutive securities, such as stock options or convertible bonds, had a negligible effect on the overall earnings available to common shareholders.
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