Illinois Tool Works Inc. (ITW) Financial Ratios
30 years of historical data (1996–2025) · Industrials · Industrial - Machinery
EV/EBITDA
↓
18.28
-3% vs avg
5yr avg: 18.88
30Y Low7.3·High21.7
P/FCF
↓
28.12
-6% vs avg
5yr avg: 29.76
30Y Low9.7·High35.4
P/B Ratio
↑
23.93
+4% vs avg
5yr avg: 23.03
30Y Low2.3·High26.4
ROE
↑
93.7%
-0% vs avg
5yr avg: 94.1%
30Y Low11%·High110%
Debt/EBITDA
↓
1.95
+3% vs avg
5yr avg: 1.90
30Y Low0.5·High2.5
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
ITW Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Illinois Tool Works Inc. trades at 25.2x earnings, roughly in line with its 5-year average of 24.7x, sitting at the 60th percentile of its historical range. This is roughly in line with the Industrials sector median P/E of 25.6x. On a free-cash-flow basis, the stock trades at 28.1x P/FCF, 6% below the 5-year average of 29.8x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $76.1B | $72.0B | $75.5B | $79.5B | $68.4B | $78.1B | $64.9B | $58.5B | $42.7B | $57.9B | $43.7B |
| Enterprise Value | $84.2B | $80.1B | $82.6B | $86.8B | $75.7B | $84.4B | $70.6B | $64.4B | $48.6B | $63.1B | $49.1B |
| P/E Ratio → | 25.18 | 23.48 | 21.65 | 26.89 | 22.55 | 29.00 | 30.75 | 23.21 | 16.67 | 34.33 | 21.48 |
| P/S Ratio | 4.74 | 4.49 | 4.75 | 4.94 | 4.30 | 5.40 | 5.16 | 4.15 | 2.89 | 4.04 | 3.22 |
| P/B Ratio | 23.93 | 22.32 | 22.76 | 26.39 | 22.16 | 21.54 | 20.39 | 19.30 | 13.11 | 12.61 | 10.27 |
| P/FCF | 28.12 | 26.60 | 26.55 | 25.79 | 35.35 | 34.54 | 25.24 | 21.91 | 17.45 | 27.49 | 21.55 |
| P/OCF | 24.35 | 23.03 | 23.01 | 22.47 | 29.15 | 30.54 | 23.12 | 19.53 | 15.19 | 24.09 | 19.00 |
P/E links to full P/E history page with 30-year chart
ITW EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Illinois Tool Works Inc.'s enterprise value stands at 18.3x EBITDA, roughly in line with its 5-year average of 18.9x. The Industrials sector median is 13.8x, placing the stock at a 32% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.99 | 5.20 | 5.39 | 4.75 | 5.84 | 5.62 | 4.57 | 3.29 | 4.41 | 3.61 |
| EV / EBITDA | 18.28 | 17.39 | 17.71 | 19.58 | 18.02 | 21.72 | 21.35 | 16.83 | 12.01 | 15.95 | 13.89 |
| EV / EBIT | 19.98 | 18.81 | 17.56 | 21.24 | 18.71 | 23.93 | 24.28 | 18.37 | 13.31 | 17.87 | 15.61 |
| EV / FCF | — | 29.59 | 29.06 | 28.15 | 39.10 | 37.35 | 27.48 | 24.15 | 19.85 | 29.98 | 24.19 |
ITW Profitability
Margins and return-on-capital ratios measuring operating efficiency
Illinois Tool Works Inc. earns an operating margin of 26.3%, significantly above the Industrials sector average of 4.3%. Operating margins have expanded from 25.1% to 26.3% over the past 3 years, signaling improving operational efficiency. Return on equity of 93.7% is exceptionally high — well above the sector median of 8.2%. ROIC of 29.0% represents excellent returns on invested capital versus a sector median of 6.1%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 44.1% | 44.1% | 43.6% | 41.5% | 40.0% | 40.4% | 40.1% | 40.8% | 40.5% | 40.5% | 40.3% |
| Operating Margin | 26.3% | 26.3% | 26.8% | 25.1% | 23.8% | 24.1% | 22.9% | 24.1% | 24.3% | 24.4% | 22.5% |
| Net Profit Margin | 19.1% | 19.1% | 21.9% | 18.4% | 19.0% | 18.6% | 16.8% | 17.9% | 17.4% | 11.8% | 15.0% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 93.7% | 93.7% | 110.2% | 96.9% | 90.4% | 79.1% | 67.9% | 80.2% | 65.3% | 38.1% | 42.9% |
| ROA | 19.6% | 19.6% | 22.8% | 19.1% | 19.3% | 17.0% | 13.7% | 16.8% | 16.2% | 10.5% | 13.2% |
| ROIC | 29.0% | 29.0% | 30.8% | 29.3% | 28.0% | 27.6% | 24.1% | 28.2% | 28.4% | 27.0% | 24.0% |
| ROCE | 38.7% | 38.7% | 39.5% | 37.1% | 32.2% | 27.1% | 22.2% | 28.1% | 28.6% | 26.7% | 23.8% |
ITW Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Illinois Tool Works Inc. carries a Debt/EBITDA ratio of 1.9x, which is manageable (40% below the sector average of 3.2x). Net debt stands at $8.1B ($9.0B total debt minus $851M cash). Interest coverage of 14.6x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.78 | 2.78 | 2.44 | 2.78 | 2.57 | 2.17 | 2.61 | 2.62 | 2.27 | 1.81 | 1.84 |
| Debt / EBITDA | 1.95 | 1.95 | 1.73 | 1.89 | 1.89 | 2.03 | 2.51 | 2.07 | 1.82 | 2.11 | 2.22 |
| Net Debt / Equity | — | 2.52 | 2.15 | 2.42 | 2.34 | 1.75 | 1.81 | 1.97 | 1.80 | 1.14 | 1.26 |
| Net Debt / EBITDA | 1.76 | 1.76 | 1.53 | 1.65 | 1.72 | 1.63 | 1.74 | 1.56 | 1.45 | 1.32 | 1.52 |
| Debt / FCF | — | 3.00 | 2.51 | 2.37 | 3.74 | 2.81 | 2.23 | 2.23 | 2.40 | 2.49 | 2.64 |
| Interest Coverage | 14.58 | 14.58 | 16.63 | 15.37 | 19.93 | 17.47 | 14.13 | 15.88 | 14.21 | 13.58 | 13.27 |
ITW Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.21x means Illinois Tool Works Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 0.89x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 1.33x to 1.21x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.21 | 1.21 | 1.36 | 1.33 | 1.41 | 1.84 | 2.52 | 2.90 | 1.63 | 2.38 | 2.22 |
| Quick Ratio | 0.89 | 0.89 | 0.99 | 0.97 | 0.95 | 1.35 | 2.06 | 2.36 | 1.26 | 1.98 | 1.83 |
| Cash Ratio | 0.17 | 0.17 | 0.22 | 0.23 | 0.16 | 0.44 | 0.99 | 0.92 | 0.42 | 1.01 | 0.90 |
| Asset Turnover | — | 0.99 | 1.06 | 1.04 | 1.03 | 0.90 | 0.81 | 0.94 | 0.99 | 0.85 | 0.89 |
| Inventory Turnover | 5.41 | 5.41 | 5.58 | 5.52 | 4.66 | 5.09 | 6.33 | 7.17 | 6.67 | 6.98 | 7.55 |
| Days Sales Outstanding | — | 73.41 | 71.08 | 73.67 | 74.98 | 74.29 | 76.08 | 67.55 | 64.80 | 67.01 | 63.26 |
ITW Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Illinois Tool Works Inc. returns 4.3% to shareholders annually — split between a 2.3% dividend yield and 2.0% buyback yield. A payout ratio of 58.2% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 4.0% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.3% | 2.5% | 2.2% | 2.0% | 2.3% | 1.9% | 2.1% | 2.3% | 2.6% | 1.6% | 1.9% |
| Payout Ratio | 58.2% | 58.2% | 48.6% | 54.6% | 50.8% | 54.3% | 65.4% | 52.4% | 43.9% | 55.8% | 40.3% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.0% | 4.3% | 4.6% | 3.7% | 4.4% | 3.4% | 3.3% | 4.3% | 6.0% | 2.9% | 4.7% |
| FCF Yield | 3.6% | 3.8% | 3.8% | 3.9% | 2.8% | 2.9% | 4.0% | 4.6% | 5.7% | 3.6% | 4.6% |
| Buyback Yield | 2.0% | 2.1% | 2.0% | 1.9% | 2.6% | 1.3% | 1.1% | 2.6% | 4.7% | 1.7% | 4.6% |
| Total Shareholder Yield | 4.3% | 4.6% | 4.2% | 3.9% | 4.8% | 3.2% | 3.2% | 4.8% | 7.3% | 3.4% | 6.5% |
| Shares Outstanding | — | $292M | $298M | $304M | $311M | $316M | $318M | $326M | $337M | $347M | $357M |
Peer Comparison
Compare ITW with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 ITWYou | $76B | 25.2 | 18.3 | 28.1 | 44.1% | 26.3% | 93.7% | 29.0% | 1.9 |
 EMR | $84B | 37.3 | 19.1 | 31.6 | 52.8% | 19.6% | 9.6% | 8.2% | 2.7 |
 ETN | $164B | 40.3 | 29.2 | 36.6 | 37.6% | 19.1% | 21.5% | 13.6% | 1.9 |
 HON | $145B | 31.1 | 21.0 | 26.9 | 36.9% | 17.5% | 27.3% | 12.6% | 4.3 |
 ROK | $53B | 61.8 | 32.3 | 39.2 | 48.1% | 17.1% | 23.5% | 15.1% | 2.1 |
 PH | $120B | 35.2 | 26.1 | 36.0 | 36.9% | 20.5% | 27.4% | 13.4% | 1.9 |
 DOV | $30B | 28.2 | 18.4 | 27.0 | 39.8% | 17.0% | 15.2% | 11.6% | 2.2 |
 AME | $54B | 37.1 | 29.9 | 32.5 | 36.4% | 26.2% | 14.6% | 12.1% | 1.2 |
 SWK | $13B | 32.7 | 12.4 | 19.6 | 29.9% | 7.6% | 4.5% | 5.8% | 3.8 |
 IR | $31B | 53.7 | 17.7 | 25.0 | 38.5% | 18.5% | 5.7% | 7.8% | 2.5 |
 GGG | $13B | 24.7 | 16.8 | 19.8 | 52.5% | 27.3% | 19.9% | 22.6% | 0.1 |
| Industrials Median | — | 25.6 | 13.8 | 20.0 | 32.0% | 4.3% | 8.2% | 6.1% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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ITW — Frequently Asked Questions
Quick answers to the most common questions about buying ITW stock.
What is Illinois Tool Works Inc.'s P/E ratio?
Illinois Tool Works Inc.'s current P/E ratio is 25.2x. The historical average is 25.6x. This places it at the 60th percentile of its historical range.
What is Illinois Tool Works Inc.'s EV/EBITDA?
Illinois Tool Works Inc.'s current EV/EBITDA is 18.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.3x.
What is Illinois Tool Works Inc.'s ROE?
Illinois Tool Works Inc.'s return on equity (ROE) is 93.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 38.9%.
Is ITW stock overvalued?
Based on historical data, Illinois Tool Works Inc. is trading at a P/E of 25.2x. This is at the 60th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Illinois Tool Works Inc.'s dividend yield?
Illinois Tool Works Inc.'s current dividend yield is 2.31% with a payout ratio of 58.2%.
What are Illinois Tool Works Inc.'s profit margins?
Illinois Tool Works Inc. has 44.1% gross margin and 26.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Illinois Tool Works Inc. have?
Illinois Tool Works Inc.'s Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.