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.

Adjusted Financial Ratios

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Adjusted Financial Ratios (Summary)

Illinois Tool Works Inc., adjusted financial ratios

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Activity Ratio
Total Asset Turnover
Reported 0.90 0.81 0.94 0.99 0.85
Adjusted 0.93 0.83 0.96 1.01 0.86
Liquidity Ratio
Current Ratio
Reported 1.84 2.52 2.90 1.63 2.38
Adjusted 2.15 2.86 3.31 1.80 2.64
Solvency Ratios
Debt to Equity
Reported 2.12 2.55 2.56 2.27 1.82
Adjusted 1.83 2.30 2.25 2.00 1.86
Debt to Capital
Reported 0.68 0.72 0.72 0.69 0.64
Adjusted 0.65 0.70 0.69 0.67 0.65
Financial Leverage
Reported 4.44 4.91 4.98 4.57 3.66
Adjusted 3.63 4.20 4.16 3.86 3.61
Profitability Ratios
Net Profit Margin
Reported 18.64% 16.77% 17.87% 17.36% 11.79%
Adjusted 19.79% 17.27% 17.68% 15.21% 16.03%
Return on Equity (ROE)
Reported 74.32% 66.30% 83.31% 78.76% 36.79%
Adjusted 67.08% 60.25% 70.63% 59.33% 49.65%
Return on Assets (ROA)
Reported 16.76% 13.51% 16.73% 17.24% 10.05%
Adjusted 18.47% 14.34% 16.98% 15.36% 13.77%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Illinois Tool Works Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Illinois Tool Works Inc. adjusted current ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Illinois Tool Works Inc. adjusted debt-to-equity ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Illinois Tool Works Inc. adjusted debt-to-capital ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Illinois Tool Works Inc. adjusted financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Illinois Tool Works Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Illinois Tool Works Inc. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Illinois Tool Works Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Illinois Tool Works Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Operating revenue 14,455 12,574 14,109 14,768 14,314
Total assets 16,077 15,612 15,068 14,870 16,780
Activity Ratio
Total asset turnover1 0.90 0.81 0.94 0.99 0.85
Adjusted
Selected Financial Data (US$ in millions)
Adjusted operating revenue2 14,627 12,608 14,082 14,778 14,339
Adjusted total assets3 15,671 15,190 14,661 14,637 16,691
Activity Ratio
Adjusted total asset turnover4 0.93 0.83 0.96 1.01 0.86

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).

1 2021 Calculation
Total asset turnover = Operating revenue ÷ Total assets
= 14,455 ÷ 16,077 = 0.90

2 Adjusted operating revenue. See details »

3 Adjusted total assets. See details »

4 2021 Calculation
Adjusted total asset turnover = Adjusted operating revenue ÷ Adjusted total assets
= 14,627 ÷ 15,671 = 0.93

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Illinois Tool Works Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Adjusted Current Ratio

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Current assets 6,374 6,523 6,253 5,778 7,278
Current liabilities 3,470 2,589 2,154 3,542 3,053
Liquidity Ratio
Current ratio1 1.84 2.52 2.90 1.63 2.38
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 6,520 6,634 6,362 5,896 7,410
Adjusted current liabilities3 3,030 2,322 1,921 3,282 2,803
Liquidity Ratio
Adjusted current ratio4 2.15 2.86 3.31 1.80 2.64

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).

1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 6,374 ÷ 3,470 = 1.84

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2021 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 6,520 ÷ 3,030 = 2.15

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Illinois Tool Works Inc. adjusted current ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Total debt 7,687 8,122 7,758 7,380 8,328
Stockholders’ equity attributable to ITW 3,625 3,181 3,026 3,254 4,585
Solvency Ratio
Debt to equity1 2.12 2.55 2.56 2.27 1.82
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 7,881 8,310 7,937 7,583 8,612
Adjusted total stockholders’ equity3 4,314 3,615 3,524 3,789 4,630
Solvency Ratio
Adjusted debt to equity4 1.83 2.30 2.25 2.00 1.86

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).

1 2021 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity attributable to ITW
= 7,687 ÷ 3,625 = 2.12

2 Adjusted total debt. See details »

3 Adjusted total stockholders’ equity. See details »

4 2021 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total stockholders’ equity
= 7,881 ÷ 4,314 = 1.83

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Illinois Tool Works Inc. adjusted debt-to-equity ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Total debt 7,687 8,122 7,758 7,380 8,328
Total capital 11,312 11,303 10,784 10,634 12,913
Solvency Ratio
Debt to capital1 0.68 0.72 0.72 0.69 0.64
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 7,881 8,310 7,937 7,583 8,612
Adjusted total capital3 12,195 11,925 11,461 11,372 13,242
Solvency Ratio
Adjusted debt to capital4 0.65 0.70 0.69 0.67 0.65

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).

1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 7,687 ÷ 11,312 = 0.68

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2021 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 7,881 ÷ 12,195 = 0.65

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Illinois Tool Works Inc. adjusted debt-to-capital ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Total assets 16,077 15,612 15,068 14,870 16,780
Stockholders’ equity attributable to ITW 3,625 3,181 3,026 3,254 4,585
Solvency Ratio
Financial leverage1 4.44 4.91 4.98 4.57 3.66
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 15,671 15,190 14,661 14,637 16,691
Adjusted total stockholders’ equity3 4,314 3,615 3,524 3,789 4,630
Solvency Ratio
Adjusted financial leverage4 3.63 4.20 4.16 3.86 3.61

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).

1 2021 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity attributable to ITW
= 16,077 ÷ 3,625 = 4.44

2 Adjusted total assets. See details »

3 Adjusted total stockholders’ equity. See details »

4 2021 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total stockholders’ equity
= 15,671 ÷ 4,314 = 3.63

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Illinois Tool Works Inc. adjusted financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Net income 2,694 2,109 2,521 2,563 1,687
Operating revenue 14,455 12,574 14,109 14,768 14,314
Profitability Ratio
Net profit margin1 18.64% 16.77% 17.87% 17.36% 11.79%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 2,894 2,178 2,489 2,248 2,299
Adjusted operating revenue3 14,627 12,608 14,082 14,778 14,339
Profitability Ratio
Adjusted net profit margin4 19.79% 17.27% 17.68% 15.21% 16.03%

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).

1 2021 Calculation
Net profit margin = 100 × Net income ÷ Operating revenue
= 100 × 2,694 ÷ 14,455 = 18.64%

2 Adjusted net income. See details »

3 Adjusted operating revenue. See details »

4 2021 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted operating revenue
= 100 × 2,894 ÷ 14,627 = 19.79%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Illinois Tool Works Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Net income 2,694 2,109 2,521 2,563 1,687
Stockholders’ equity attributable to ITW 3,625 3,181 3,026 3,254 4,585
Profitability Ratio
ROE1 74.32% 66.30% 83.31% 78.76% 36.79%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 2,894 2,178 2,489 2,248 2,299
Adjusted total stockholders’ equity3 4,314 3,615 3,524 3,789 4,630
Profitability Ratio
Adjusted ROE4 67.08% 60.25% 70.63% 59.33% 49.65%

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).

1 2021 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity attributable to ITW
= 100 × 2,694 ÷ 3,625 = 74.32%

2 Adjusted net income. See details »

3 Adjusted total stockholders’ equity. See details »

4 2021 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total stockholders’ equity
= 100 × 2,894 ÷ 4,314 = 67.08%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Illinois Tool Works Inc. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Reported
Selected Financial Data (US$ in millions)
Net income 2,694 2,109 2,521 2,563 1,687
Total assets 16,077 15,612 15,068 14,870 16,780
Profitability Ratio
ROA1 16.76% 13.51% 16.73% 17.24% 10.05%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 2,894 2,178 2,489 2,248 2,299
Adjusted total assets3 15,671 15,190 14,661 14,637 16,691
Profitability Ratio
Adjusted ROA4 18.47% 14.34% 16.98% 15.36% 13.77%

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).

1 2021 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 2,694 ÷ 16,077 = 16.76%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2021 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 2,894 ÷ 15,671 = 18.47%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Illinois Tool Works Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.