Illinois Tool Works Inc (ITW)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,317,000 | 3,012,000 | 3,088,000 | 3,625,000 | 3,181,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $3,317,000K)
= 0.00
Illinois Tool Works Inc has maintained a consistent debt-to-capital ratio of 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not utilized debt as a significant portion of its capital structure, suggesting a conservative financing approach. A low debt-to-capital ratio signifies lower financial risk and potential for financial stability, as the company relies more on equity financing rather than debt to fund its operations and investments. Investors and stakeholders may view this favorably due to the lower risk associated with the company's capital structure. It is essential to monitor future trends in the debt-to-capital ratio to assess any potential changes in Illinois Tool Works Inc's financing strategy and its impact on the overall financial health of the company.
Peer comparison
Dec 31, 2024