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

Microsoft Excel

Solvency Ratios (Summary)

Illinois Tool Works Inc., solvency ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Debt Ratios
Debt to equity 2.12 2.55 2.56 2.27 1.82
Debt to equity (including operating lease liability) 2.17 2.61 2.62 2.27 1.82
Debt to capital 0.68 0.72 0.72 0.69 0.64
Debt to capital (including operating lease liability) 0.68 0.72 0.72 0.69 0.64
Debt to assets 0.48 0.52 0.51 0.50 0.50
Debt to assets (including operating lease liability) 0.49 0.53 0.53 0.50 0.50
Financial leverage 4.44 4.91 4.98 4.57 3.66
Coverage Ratios
Interest coverage 17.47 14.13 15.88 14.21 13.58
Fixed charge coverage 11.39 9.48 10.84 9.91 9.61

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).

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 2019 to 2020 and from 2020 to 2021.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Illinois Tool Works Inc. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 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 2019 to 2020 and from 2020 to 2021.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Illinois Tool Works Inc. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Illinois Tool Works Inc. debt to assets ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Illinois Tool Works Inc. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Illinois Tool Works Inc. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 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 deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Illinois Tool Works Inc. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Debt to Equity

Illinois Tool Works Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term debt 778 350 4 1,351 850
Long-term debt 6,909 7,772 7,754 6,029 7,478
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
Benchmarks
Debt to Equity, Competitors2
Boeing Co.
Caterpillar Inc. 2.29 2.42 2.58
Eaton Corp. plc 0.52 0.54 0.52
GE Aerospace 0.87 2.11 3.21
Honeywell International Inc. 1.06 1.28 0.87
Lockheed Martin Corp. 1.07 2.02 4.05
RTX Corp. 0.43 0.44 1.04
Debt to Equity, Sector
Capital Goods 1.26 1.75 2.08
Debt to Equity, Industry
Industrials 1.25 1.73 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 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 2019 to 2020 and from 2020 to 2021.

Debt to Equity (including Operating Lease Liability)

Illinois Tool Works Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term debt 778 350 4 1,351 850
Long-term debt 6,909 7,772 7,754 6,029 7,478
Total debt 7,687 8,122 7,758 7,380 8,328
Current portion of operating lease liabilities 61 55 51
Long-term portion of operating lease liabilities 133 133 128
Total debt (including operating lease liability) 7,881 8,310 7,937 7,380 8,328
 
Stockholders’ equity attributable to ITW 3,625 3,181 3,026 3,254 4,585
Solvency Ratio
Debt to equity (including operating lease liability)1 2.17 2.61 2.62 2.27 1.82
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Boeing Co.
Caterpillar Inc. 2.33 2.46 2.62
Eaton Corp. plc 0.55 0.57 0.55
GE Aerospace 0.94 2.20 3.32
Honeywell International Inc. 1.11 1.32 0.90
Lockheed Martin Corp. 1.19 2.21 4.40
RTX Corp. 0.46 0.47 1.11
Debt to Equity (including Operating Lease Liability), Sector
Capital Goods 1.32 1.81 2.17
Debt to Equity (including Operating Lease Liability), Industry
Industrials 1.39 1.89 1.96

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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity attributable to ITW
= 7,881 ÷ 3,625 = 2.17

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Illinois Tool Works Inc. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Debt to Capital

Illinois Tool Works Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term debt 778 350 4 1,351 850
Long-term debt 6,909 7,772 7,754 6,029 7,478
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
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
Benchmarks
Debt to Capital, Competitors2
Boeing Co. 1.35 1.40 1.46
Caterpillar Inc. 0.70 0.71 0.72
Eaton Corp. plc 0.34 0.35 0.34
GE Aerospace 0.47 0.68 0.76
Honeywell International Inc. 0.51 0.56 0.46
Lockheed Martin Corp. 0.52 0.67 0.80
RTX Corp. 0.30 0.31 0.51
Debt to Capital, Sector
Capital Goods 0.56 0.64 0.68
Debt to Capital, Industry
Industrials 0.56 0.63 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 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 2019 to 2020 and from 2020 to 2021.

Debt to Capital (including Operating Lease Liability)

Illinois Tool Works Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term debt 778 350 4 1,351 850
Long-term debt 6,909 7,772 7,754 6,029 7,478
Total debt 7,687 8,122 7,758 7,380 8,328
Current portion of operating lease liabilities 61 55 51
Long-term portion of operating lease liabilities 133 133 128
Total debt (including operating lease liability) 7,881 8,310 7,937 7,380 8,328
Stockholders’ equity attributable to ITW 3,625 3,181 3,026 3,254 4,585
Total capital (including operating lease liability) 11,506 11,491 10,963 10,634 12,913
Solvency Ratio
Debt to capital (including operating lease liability)1 0.68 0.72 0.72 0.69 0.64
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Boeing Co. 1.34 1.39 1.43
Caterpillar Inc. 0.70 0.71 0.72
Eaton Corp. plc 0.36 0.36 0.35
GE Aerospace 0.49 0.69 0.77
Honeywell International Inc. 0.53 0.57 0.47
Lockheed Martin Corp. 0.54 0.69 0.81
RTX Corp. 0.31 0.32 0.53
Debt to Capital (including Operating Lease Liability), Sector
Capital Goods 0.57 0.64 0.68
Debt to Capital (including Operating Lease Liability), Industry
Industrials 0.58 0.65 0.66

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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 7,881 ÷ 11,506 = 0.68

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Illinois Tool Works Inc. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Debt to Assets

Illinois Tool Works Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term debt 778 350 4 1,351 850
Long-term debt 6,909 7,772 7,754 6,029 7,478
Total debt 7,687 8,122 7,758 7,380 8,328
 
Total assets 16,077 15,612 15,068 14,870 16,780
Solvency Ratio
Debt to assets1 0.48 0.52 0.51 0.50 0.50
Benchmarks
Debt to Assets, Competitors2
Boeing Co. 0.42 0.42 0.20
Caterpillar Inc. 0.46 0.47 0.48
Eaton Corp. plc 0.25 0.25 0.25
GE Aerospace 0.18 0.30 0.34
Honeywell International Inc. 0.30 0.35 0.27
Lockheed Martin Corp. 0.23 0.24 0.27
RTX Corp. 0.20 0.20 0.31
Debt to Assets, Sector
Capital Goods 0.28 0.32 0.31
Debt to Assets, Industry
Industrials 0.29 0.32 0.32

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 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 deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Debt to Assets (including Operating Lease Liability)

Illinois Tool Works Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term debt 778 350 4 1,351 850
Long-term debt 6,909 7,772 7,754 6,029 7,478
Total debt 7,687 8,122 7,758 7,380 8,328
Current portion of operating lease liabilities 61 55 51
Long-term portion of operating lease liabilities 133 133 128
Total debt (including operating lease liability) 7,881 8,310 7,937 7,380 8,328
 
Total assets 16,077 15,612 15,068 14,870 16,780
Solvency Ratio
Debt to assets (including operating lease liability)1 0.49 0.53 0.53 0.50 0.50
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Boeing Co. 0.43 0.43 0.21
Caterpillar Inc. 0.46 0.48 0.49
Eaton Corp. plc 0.27 0.27 0.27
GE Aerospace 0.19 0.31 0.35
Honeywell International Inc. 0.32 0.36 0.28
Lockheed Martin Corp. 0.26 0.26 0.29
RTX Corp. 0.21 0.21 0.33
Debt to Assets (including Operating Lease Liability), Sector
Capital Goods 0.29 0.33 0.33
Debt to Assets (including Operating Lease Liability), Industry
Industrials 0.32 0.35 0.34

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 assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 7,881 ÷ 16,077 = 0.49

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Illinois Tool Works Inc. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Financial Leverage

Illinois Tool Works Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
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
Benchmarks
Financial Leverage, Competitors2
Boeing Co.
Caterpillar Inc. 5.02 5.11 5.38
Eaton Corp. plc 2.07 2.13 2.04
GE Aerospace 4.93 7.13 9.40
Honeywell International Inc. 3.47 3.68 3.17
Lockheed Martin Corp. 4.64 8.43 15.20
RTX Corp. 2.21 2.25 3.34
Financial Leverage, Sector
Capital Goods 4.55 5.54 6.65
Financial Leverage, Industry
Industrials 4.33 5.35 5.76

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 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 decreased from 2019 to 2020 and from 2020 to 2021.

Interest Coverage

Illinois Tool Works Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income 2,694 2,109 2,521 2,563 1,687
Add: Income tax expense 632 595 767 831 1,583
Add: Interest expense 202 206 221 257 260
Earnings before interest and tax (EBIT) 3,528 2,910 3,509 3,651 3,530
Solvency Ratio
Interest coverage1 17.47 14.13 15.88 14.21 13.58
Benchmarks
Interest Coverage, Competitors2
Boeing Co. -0.88 -5.71 -2.19
Caterpillar Inc. 17.88 8.80 19.62
Eaton Corp. plc 21.11 12.72 11.98
GE Aerospace -0.96 2.59 1.27
Honeywell International Inc. 22.09 17.75 22.17
Lockheed Martin Corp. 14.27 14.93 12.09
RTX Corp. 4.71 -0.65 5.65
Interest Coverage, Sector
Capital Goods 3.98 1.99 4.85
Interest Coverage, Industry
Industrials 6.00 2.04 4.37

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
Interest coverage = EBIT ÷ Interest expense
= 3,528 ÷ 202 = 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 deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Fixed Charge Coverage

Illinois Tool Works Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income 2,694 2,109 2,521 2,563 1,687
Add: Income tax expense 632 595 767 831 1,583
Add: Interest expense 202 206 221 257 260
Earnings before interest and tax (EBIT) 3,528 2,910 3,509 3,651 3,530
Add: Rental expense for operating leases 118 113 113 124 120
Earnings before fixed charges and tax 3,646 3,023 3,622 3,775 3,650
 
Interest expense 202 206 221 257 260
Rental expense for operating leases 118 113 113 124 120
Fixed charges 320 319 334 381 380
Solvency Ratio
Fixed charge coverage1 11.39 9.48 10.84 9.91 9.61
Benchmarks
Fixed Charge Coverage, Competitors2
Boeing Co. -0.64 -4.75 -1.19
Caterpillar Inc. 12.73 6.58 13.01
Eaton Corp. plc 10.40 6.24 7.45
GE Aerospace -0.22 1.93 1.09
Honeywell International Inc. 13.67 11.49 14.06
Lockheed Martin Corp. 9.95 11.12 9.12
RTX Corp. 3.66 -0.22 4.31
Fixed Charge Coverage, Sector
Capital Goods 3.06 1.66 3.63
Fixed Charge Coverage, Industry
Industrials 3.93 1.59 2.96

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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,646 ÷ 320 = 11.39

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Illinois Tool Works Inc. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.