Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Illinois Tool Works Inc., solvency ratios (quarterly data)
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)
| 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 | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 0.52 | 0.57 | 0.79 | 0.68 | 0.54 | 0.57 | 0.58 | 0.59 | 0.52 | 0.51 | 0.50 | 0.47 | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 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)
| 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 | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 0.34 | 0.36 | 0.44 | 0.40 | 0.35 | 0.36 | 0.37 | 0.37 | 0.34 | 0.34 | 0.33 | 0.32 | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 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)
| 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 | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 0.25 | 0.27 | 0.33 | 0.30 | 0.25 | 0.26 | 0.27 | 0.27 | 0.25 | 0.25 | 0.25 | 0.24 | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 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)
| 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 | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 2.07 | 2.14 | 2.39 | 2.27 | 2.13 | 2.14 | 2.14 | 2.17 | 2.04 | 2.01 | 1.98 | 1.95 | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 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)
| 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 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 21.11 | 20.08 | 15.71 | 11.87 | 12.72 | 11.39 | 11.72 | 13.79 | 11.98 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | -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. |