Illinois Tool Works Inc (ITW)

Debt-to-assets ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	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
Long-term debt	US$ in thousands	6,339,000	6,818,000	6,947,000	5,510,000	6,173,000	5,940,000	6,115,000	6,817,000	6,909,000	8,451,000	8,649,000	8,880,000	7,772,000	9,151,000	8,816,000	8,199,000	7,754,000	8,582,000	8,542,000	7,201,000
Total assets	US$ in thousands	15,518,000	15,395,000	15,652,000	15,921,000	15,422,000	15,226,000	15,666,000	16,286,000	16,077,000	15,517,000	15,580,000	15,663,000	15,612,000	14,940,000	14,263,000	14,149,000	15,068,000	14,960,000	15,187,000	15,326,000
Debt-to-assets ratio		0.41	0.44	0.44	0.35	0.40	0.39	0.39	0.42	0.43	0.54	0.56	0.57	0.50	0.61	0.62	0.58	0.51	0.57	0.56	0.47

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $6,339,000K ÷ $15,518,000K
= 0.41

The debt-to-assets ratio of Illinois Tool Works, Inc. has remained relatively stable over the past eight quarters, hovering within the range of 0.48 to 0.53. This ratio indicates that on average, the company finances approximately 50-53% of its assets through debt, with the remaining portion funded by equity.

A debt-to-assets ratio of 0.53 in Q4 2023 suggests that the company had slightly increased its level of debt relative to its total assets compared to the previous quarter. However, the fluctuations in this ratio seem to be minor and within the normal range for the company.

Overall, Illinois Tool Works, Inc. appears to maintain a moderate level of leverage, balancing its use of debt to finance operations while also retaining a significant portion of assets as equity. It is essential to continue monitoring this ratio in conjunction with other financial metrics to assess the company's overall financial health and potential risks associated with its debt management.