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.

Analysis of Solvency Ratios
Quarterly Data

Microsoft Excel

Solvency Ratios (Summary)

Illinois Tool Works Inc., solvency ratios (quarterly data)

Microsoft Excel
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Debt Ratios
Debt to equity 2.12 2.16 2.17 2.43 2.55 2.95 3.30 3.37 2.56 2.58 2.53 2.42 2.27 2.09 1.96 1.82 1.82 1.62 1.69 1.75
Debt to capital 0.68 0.68 0.68 0.71 0.72 0.75 0.77 0.77 0.72 0.72 0.72 0.71 0.69 0.68 0.66 0.64 0.64 0.62 0.63 0.64
Debt to assets 0.48 0.49 0.49 0.51 0.52 0.53 0.54 0.54 0.51 0.51 0.51 0.51 0.50 0.48 0.48 0.47 0.50 0.50 0.51 0.51
Financial leverage 4.44 4.44 4.43 4.78 4.91 5.54 6.05 6.20 4.98 5.04 4.91 4.80 4.57 4.32 4.10 3.89 3.66 3.25 3.34 3.46
Coverage Ratios
Interest coverage 17.47 17.38 16.82 14.69 14.13 14.22 14.73 16.47 15.88 15.05 14.33 14.13 14.21 13.98 14.20 13.86 13.58

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Illinois Tool Works Inc. debt to equity ratio improved from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Illinois Tool Works Inc. debt to capital ratio improved from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Illinois Tool Works Inc. debt to assets ratio improved from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Illinois Tool Works Inc. financial leverage ratio increased from Q2 2021 to Q3 2021 but then slightly decreased from Q3 2021 to Q4 2021.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Illinois Tool Works Inc. interest coverage ratio improved from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021.

Debt to Equity

Illinois Tool Works Inc., debt to equity calculation (quarterly data)

Microsoft Excel
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Selected Financial Data (US$ in millions)
Short-term debt 778 579 592 350 350 353 4 4 4 1,760 1,351 1,350 1,350 660 850 698 691 671
Long-term debt 6,909 6,972 7,056 7,599 7,772 7,592 7,765 7,690 7,754 7,643 7,809 5,981 6,029 6,054 6,069 6,889 7,478 7,439 7,360 7,205
Total debt 7,687 7,551 7,648 7,949 8,122 7,945 7,769 7,694 7,758 7,643 7,809 7,741 7,380 7,404 7,419 7,549 8,328 8,137 8,051 7,876
 
Stockholders’ equity attributable to ITW 3,625 3,492 3,520 3,274 3,181 2,696 2,357 2,283 3,026 2,966 3,091 3,196 3,254 3,542 3,785 4,159 4,585 5,023 4,771 4,493
Solvency Ratio
Debt to equity1 2.12 2.16 2.17 2.43 2.55 2.95 3.30 3.37 2.56 2.58 2.53 2.42 2.27 2.09 1.96 1.82 1.82 1.62 1.69 1.75
Benchmarks
Debt to Equity, Competitors2
Boeing Co. 117.95
Caterpillar Inc. 2.29 2.21 2.23 2.30 2.42 2.55 2.81 2.61 2.58 2.54 2.45 2.32
Cummins Inc. 0.49 0.49 0.50 0.50 0.52 0.53 0.53 0.47 0.32 0.34 0.27 0.31
General Electric Co. 0.87 1.68 1.90 2.12 2.11 2.39 2.43 2.41 3.21 3.34 2.95 3.06
Honeywell International Inc. 1.06 1.19 1.19 1.19 1.28 1.23 1.22 0.91 0.87 1.03 0.91 0.86
Lockheed Martin Corp. 1.07 1.21 1.87 1.93 2.02 2.56 3.38 3.68 4.05 3.48 4.75 5.65
RTX Corp. 0.43 0.44 0.44 0.44 0.44 0.48 0.49 1.18 1.04 1.10 1.11 1.14

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

1 Q4 2021 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity attributable to ITW
= 7,687 ÷ 3,625 = 2.12

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Illinois Tool Works Inc. debt to equity ratio improved from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021.

Debt to Capital

Illinois Tool Works Inc., debt to capital calculation (quarterly data)

Microsoft Excel
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Selected Financial Data (US$ in millions)
Short-term debt 778 579 592 350 350 353 4 4 4 1,760 1,351 1,350 1,350 660 850 698 691 671
Long-term debt 6,909 6,972 7,056 7,599 7,772 7,592 7,765 7,690 7,754 7,643 7,809 5,981 6,029 6,054 6,069 6,889 7,478 7,439 7,360 7,205
Total debt 7,687 7,551 7,648 7,949 8,122 7,945 7,769 7,694 7,758 7,643 7,809 7,741 7,380 7,404 7,419 7,549 8,328 8,137 8,051 7,876
Stockholders’ equity attributable to ITW 3,625 3,492 3,520 3,274 3,181 2,696 2,357 2,283 3,026 2,966 3,091 3,196 3,254 3,542 3,785 4,159 4,585 5,023 4,771 4,493
Total capital 11,312 11,043 11,168 11,223 11,303 10,641 10,126 9,977 10,784 10,609 10,900 10,937 10,634 10,946 11,204 11,708 12,913 13,160 12,822 12,369
Solvency Ratio
Debt to capital1 0.68 0.68 0.68 0.71 0.72 0.75 0.77 0.77 0.72 0.72 0.72 0.71 0.69 0.68 0.66 0.64 0.64 0.62 0.63 0.64
Benchmarks
Debt to Capital, Competitors2
Boeing Co. 1.35 1.30 1.36 1.40 1.40 1.24 1.23 1.33 1.46 1.20 1.38 0.99
Caterpillar Inc. 0.70 0.69 0.69 0.70 0.71 0.72 0.74 0.72 0.72 0.72 0.71 0.70
Cummins Inc. 0.33 0.33 0.33 0.34 0.34 0.35 0.35 0.32 0.24 0.25 0.21 0.24
General Electric Co. 0.47 0.63 0.65 0.68 0.68 0.70 0.71 0.71 0.76 0.77 0.75 0.75
Honeywell International Inc. 0.51 0.54 0.54 0.54 0.56 0.55 0.55 0.48 0.46 0.51 0.48 0.46
Lockheed Martin Corp. 0.52 0.55 0.65 0.66 0.67 0.72 0.77 0.79 0.80 0.78 0.83 0.85
RTX Corp. 0.30 0.30 0.31 0.31 0.31 0.32 0.33 0.54 0.51 0.52 0.53 0.53

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

1 Q4 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 7,687 ÷ 11,312 = 0.68

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Illinois Tool Works Inc. debt to capital ratio improved from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021.

Debt to Assets

Illinois Tool Works Inc., debt to assets calculation (quarterly data)

Microsoft Excel
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Selected Financial Data (US$ in millions)
Short-term debt 778 579 592 350 350 353 4 4 4 1,760 1,351 1,350 1,350 660 850 698 691 671
Long-term debt 6,909 6,972 7,056 7,599 7,772 7,592 7,765 7,690 7,754 7,643 7,809 5,981 6,029 6,054 6,069 6,889 7,478 7,439 7,360 7,205
Total debt 7,687 7,551 7,648 7,949 8,122 7,945 7,769 7,694 7,758 7,643 7,809 7,741 7,380 7,404 7,419 7,549 8,328 8,137 8,051 7,876
 
Total assets 16,077 15,517 15,580 15,663 15,612 14,940 14,263 14,149 15,068 14,960 15,187 15,326 14,870 15,319 15,523 16,163 16,780 16,314 15,922 15,529
Solvency Ratio
Debt to assets1 0.48 0.49 0.49 0.51 0.52 0.53 0.54 0.54 0.51 0.51 0.51 0.51 0.50 0.48 0.48 0.47 0.50 0.50 0.51 0.51
Benchmarks
Debt to Assets, Competitors2
Boeing Co. 0.42 0.43 0.43 0.42 0.42 0.38 0.38 0.27 0.20 0.19 0.15 0.12
Caterpillar Inc. 0.46 0.46 0.46 0.47 0.47 0.50 0.50 0.49 0.48 0.49 0.46 0.45
Cummins Inc. 0.18 0.17 0.17 0.18 0.18 0.19 0.19 0.17 0.12 0.13 0.11 0.12
General Electric Co. 0.18 0.27 0.27 0.29 0.30 0.31 0.32 0.32 0.34 0.35 0.34 0.34
Honeywell International Inc. 0.30 0.33 0.33 0.34 0.35 0.35 0.35 0.28 0.27 0.31 0.28 0.28
Lockheed Martin Corp. 0.23 0.23 0.23 0.24 0.24 0.25 0.26 0.26 0.27 0.28 0.28 0.29
RTX Corp. 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.33 0.31 0.32 0.33 0.33

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

1 Q4 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 7,687 ÷ 16,077 = 0.48

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Illinois Tool Works Inc. debt to assets ratio improved from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021.

Financial Leverage

Illinois Tool Works Inc., financial leverage calculation (quarterly data)

Microsoft Excel
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Selected Financial Data (US$ in millions)
Total assets 16,077 15,517 15,580 15,663 15,612 14,940 14,263 14,149 15,068 14,960 15,187 15,326 14,870 15,319 15,523 16,163 16,780 16,314 15,922 15,529
Stockholders’ equity attributable to ITW 3,625 3,492 3,520 3,274 3,181 2,696 2,357 2,283 3,026 2,966 3,091 3,196 3,254 3,542 3,785 4,159 4,585 5,023 4,771 4,493
Solvency Ratio
Financial leverage1 4.44 4.44 4.43 4.78 4.91 5.54 6.05 6.20 4.98 5.04 4.91 4.80 4.57 4.32 4.10 3.89 3.66 3.25 3.34 3.46
Benchmarks
Financial Leverage, Competitors2
Boeing Co. 961.67
Caterpillar Inc. 5.02 4.85 4.85 4.87 5.11 5.13 5.57 5.35 5.38 5.22 5.34 5.10
Cummins Inc. 2.80 2.85 2.87 2.83 2.81 2.80 2.82 2.84 2.63 2.61 2.45 2.54
General Electric Co. 4.93 6.33 7.09 7.30 7.13 7.64 7.62 7.43 9.40 9.42 8.71 8.96
Honeywell International Inc. 3.47 3.60 3.56 3.53 3.68 3.51 3.50 3.25 3.17 3.32 3.23 3.12
Lockheed Martin Corp. 4.64 5.38 7.99 8.15 8.43 10.25 13.22 14.29 15.20 12.66 16.79 19.34
RTX Corp. 2.21 2.23 2.23 2.24 2.25 2.37 2.40 3.54 3.34 3.44 3.41 3.46

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

1 Q4 2021 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity attributable to ITW
= 16,077 ÷ 3,625 = 4.44

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Illinois Tool Works Inc. financial leverage ratio increased from Q2 2021 to Q3 2021 but then slightly decreased from Q3 2021 to Q4 2021.

Interest Coverage

Illinois Tool Works Inc., interest coverage calculation (quarterly data)

Microsoft Excel
Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Selected Financial Data (US$ in millions)
Net income 609 639 775 671 642 582 319 566 641 660 623 597 607 638 666 652 (76) 640 587 536
Add: Income tax expense 183 167 88 194 182 157 87 169 190 182 202 193 209 197 228 197 872 266 232 213
Add: Interest expense 49 49 52 52 52 52 51 51 51 52 55 63 63 64 64 66 66 65 65 64
Earnings before interest and tax (EBIT) 841 855 915 917 876 791 457 786 882 894 880 853 879 899 958 915 862 971 884 813
Solvency Ratio
Interest coverage1 17.47 17.38 16.82 14.69 14.13 14.22 14.73 16.47 15.88 15.05 14.33 14.13 14.21 13.98 14.20 13.86 13.58
Benchmarks
Interest Coverage, Competitors2
Boeing Co. -0.88 -2.29 -2.55 -4.26 -5.71 -3.83 -3.86 -6.13 -2.19
Caterpillar Inc. 17.88 14.11 11.79 9.28 8.80 9.94 13.07 17.44 19.62
Cummins Inc. 25.78 26.19 26.97 24.49 24.38 23.22 23.71 27.44 27.00
General Electric Co. -0.96 2.15 1.11 0.65 2.59 2.16 2.11 2.64 1.27
Honeywell International Inc. 22.09 20.98 18.89 16.79 17.75 18.10 20.68 23.18 22.17
Lockheed Martin Corp. 14.27 13.67 15.97 15.44 14.93 14.16 13.35 12.63 12.09

Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

1 Q4 2021 Calculation
Interest coverage = (EBITQ4 2021 + EBITQ3 2021 + EBITQ2 2021 + EBITQ1 2021) ÷ (Interest expenseQ4 2021 + Interest expenseQ3 2021 + Interest expenseQ2 2021 + Interest expenseQ1 2021)
= (841 + 855 + 915 + 917) ÷ (49 + 49 + 52 + 52) = 17.47

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Illinois Tool Works Inc. interest coverage ratio improved from Q2 2021 to Q3 2021 and from Q3 2021 to Q4 2021.