Illinois Tool Works Inc (ITW)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total stockholders’ equity | US$ in thousands | 3,012,000 | 3,003,000 | 3,093,000 | 3,100,000 | 3,088,000 | 3,013,000 | 3,378,000 | 3,581,000 | 3,625,000 | 3,492,000 | 3,520,000 | 3,274,000 | 3,181,000 | 2,696,000 | 2,357,000 | 2,283,000 | 3,026,000 | 2,966,000 | 3,091,000 | 3,196,000 |
| Financial leverage ratio | 5.15 | 5.13 | 5.06 | 5.14 | 4.99 | 5.05 | 4.64 | 4.55 | 4.44 | 4.44 | 4.43 | 4.78 | 4.91 | 5.54 | 6.05 | 6.20 | 4.98 | 5.04 | 4.91 | 4.80 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $15,518,000K ÷ $3,012,000K
= 5.15
The financial leverage ratio of Illinois Tool Works, Inc. has shown some fluctuation over the past eight quarters. In Q4 2023 and Q1 2023, the ratio increased to 5.15 and 5.14 respectively, indicating that the company's level of debt relative to its equity also increased during these periods. This may suggest higher financial risk and a greater reliance on debt to finance its operations.
On the other hand, in Q2 2023, the financial leverage ratio decreased to 5.06, which could indicate a slight reduction in debt relative to equity compared to the previous quarter. However, in comparison to the same quarter of the previous year, the ratio has generally been trending upwards, with Q4 2022 showing a ratio of 4.99.
The highest financial leverage ratio recorded in the data provided was in Q3 2022 at 5.05, while the lowest was in Q1 2022 at 4.55. This indicates that there has been some variability in the company's capital structure over the period under review.
Overall, the trend in Illinois Tool Works, Inc.'s financial leverage ratio suggests that the company has been gradually increasing its reliance on debt to finance its assets and operations. Investors and stakeholders may want to monitor this ratio closely to assess the company's risk profile and financial health.
Peer comparison
Dec 31, 2023