Illinois Tool Works
Financial ratios & Valuation

Forward Multiples (2025 – 2027)

202520262027
Price/Earnings ratio
24.2222.3420.41
Price/Sales ratio
4.874.674.43
Earnings per Share (EPS)
$10.89$11.81$12.93

Historical Multiples (2014 – 2023)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM Median
Valuation Ratios
Price/Earnings ratio
12.9117.9521.3634.0316.5523.0730.6328.8622.4826.8021.9816.55
Price/Sales ratio
2.622.543.194.012.874.125.135.374.284.924.752.87
Price/Book Value ratio
5.576.5210.2112.5213.0419.2220.3121.4522.0826.3122.4013.04
Price/Cash Flow ratio
23.5414.8318.8823.9015.0919.4223.0130.4129.0422.3923.6915.09
Price/Free Cash Flow ratio
30.3116.9221.4227.2717.3421.7925.1334.3935.2225.7027.4817.34
Price/Earnings Growth ratio
0.13-0.601.93-2.340.2913.58-2.121.011.53-87.5610.790.29
Dividend Yield
1.86%2.17%1.88%1.63%2.64%2.27%2.13%1.88%2.26%2.03%1.67%2.27%
Profitability Indicator Ratios
Gross Profit Margin
40.12%41.15%41.93%41.95%41.73%41.97%41.34%41.27%40.81%42.16%43.73%41.73%
Operating Profit Margin
19.93%21.38%22.53%24.40%24.26%24.11%22.92%24.05%23.78%25.08%26.46%24.26%
Pretax Profit Margin
18.63%20.28%21.38%22.84%22.98%23.30%21.50%23.00%24.11%23.73%27.37%22.98%
Net Profit Margin
20.33%14.16%14.96%11.78%17.35%17.86%16.77%18.63%19.04%18.35%21.66%17.35%
Effective Tax Rate
29.97%30.15%30.02%48.40%24.48%23.32%22.00%19.00%21.03%22.65%20.86%23.32%
Return on Assets
16.66%12.07%13.38%10.05%17.23%16.73%13.50%16.75%19.67%19.05%21.83%17.23%
Return On Equity
43.20%36.35%47.83%36.79%78.76%83.31%66.29%74.31%98.25%98.17%111.59%78.76%
Return on Capital Employed
20.41%21.45%24.62%25.45%31.63%26.34%22.13%27.57%34.57%37.25%37.69%31.63%
Liquidity Ratios
Current Ratio
2.282.832.212.381.632.902.51N/AN/AN/A1.362.90
Quick Ratio
1.952.371.821.981.252.362.061.340.940.960.962.36
Cash ratio
1.121.300.891.010.420.910.990.440.150.220.200.91
Days of Sales Outstanding
62.29N/AN/AN/AN/AN/AN/AN/AN/A73.6773.82N/A
Days of Inventory outstanding
49.6550.2549.7353.5955.9151.8958.8472.8379.5166.8873.9055.91
Operating Cycle
111.9550.2549.7353.5955.9151.8958.8472.8379.51140.55147.7355.91
Days of Payables Outstanding
21.5420.7723.6225.9122.2221.0426.4225.1522.9922.7622.6122.22
Cash Conversion Cycle
90.4029.4726.1127.6733.6830.8532.4147.6856.51117.78125.1133.68
Debt Ratios
Debt Ratio
0.420.470.510.490.490.510.520.470.500.520.520.49
Debt Equity Ratio
1.091.421.841.812.262.562.552.122.512.712.462.26
Long-term Debt to Capitalization
0.460.560.620.610.640.710.700.650.660.670.650.64
Total Debt to Capitalization
0.520.580.640.640.690.710.710.670.710.730.710.69
Interest Coverage Ratio
11.5612.6912.9213.0713.9415.3913.99N/AN/AN/A14.8113.94
Cash Flow to Debt Ratio
0.210.300.290.280.380.380.340.330.300.430.380.38
Company Equity Multiplier
2.593.013.573.654.564.974.904.434.995.154.664.56
Cash Flow Ratios
Operating Cash Flow / Sales Ratio
0.110.170.160.160.190.210.220.170.140.210.200.19
Free Cash Flow / Operating Cash Flow Ratio
0.770.870.880.870.870.890.910.880.820.870.850.89
Cash Flow Coverage Ratio
0.210.300.290.280.380.380.340.330.300.430.380.38
Short Term Coverage Ratio
1.094.373.532.822.08748.758.023.281.471.931.81748.75
Dividend Payout Ratio
24.13%39.07%40.34%55.77%43.85%52.39%65.38%54.30%50.82%54.61%48.42%43.85%