Illinois Tool Works Inc (ITW)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $3,317,000K
= 0.00
Illinois Tool Works Inc has consistently maintained a debt-to-equity ratio of 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has been financing its operations primarily through equity rather than debt during this period. A debt-to-equity ratio of 0.00 signifies that the company has no debt on its balance sheet relative to its equity. This may suggest a lower financial risk due to a lower level of leverage, as there are no financial obligations in the form of debt that need to be serviced. However, it's important to note that a very low debt-to-equity ratio may also signify underutilization of debt as a potential source of cheaper capital that could enhance returns for shareholders.
Peer comparison
Dec 31, 2024