Illinois Tool Works Inc (ITW)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.13 | 5.15 | 4.99 | 4.44 | 4.91 |
Illinois Tool Works Inc has consistently maintained a strong solvency position as indicated by its debt-related ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 from December 31, 2020, to December 31, 2024. This demonstrates that the company has not been reliant on debt financing to support its assets or operations during this period.
Additionally, the Financial leverage ratio has shown some fluctuation over the years, ranging from 4.13 to 5.15. Despite these fluctuations, the ratio has generally remained within a reasonable range, indicating that the company has effectively utilized its capital structure to generate returns for its shareholders without taking on excessive financial risk.
Overall, the solvency ratios suggest that Illinois Tool Works Inc has maintained a strong financial position and has effectively managed its debt levels and capital structure to support its operations and growth strategies.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 16.63 | 15.19 | 18.67 | 17.21 | 13.99 |
Illinois Tool Works Inc has shown a consistently healthy interest coverage ratio over the periods from December 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT).
The trend indicates an increase in the interest coverage ratio over the years, starting at 13.99 in 2020 and peaking at 18.67 in 2022. This upward trajectory suggests that the company's earnings have been sufficient to cover its interest expenses comfortably.
Even though there was a slight decrease in the ratio in 2023 to 15.19 and a subsequent increase to 16.63 in 2024, the values remain at levels that indicate the company's ability to manage its interest payments without significant financial strain.
Overall, the consistent and improving interest coverage ratios of Illinois Tool Works Inc reflect a strong financial position and the company's ability to meet its debt obligations in the foreseeable future.