Illinois Tool Works Inc. cash flow to debt ratio of 34.85% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Illinois Tool Works Inc.'s free cash flow has decreased 4.82% from $2.84B last year to $2.71B, signaling decreasing performance

Illinois Tool Works Inc.'s debt to equity ratio is 3.35, which means that the company's assets are unhealthy financed, signaling financial risk.

Illinois Tool Works Inc.'s debt has increased relative to shareholder equity from 2.44 last year to 3.35 today, signaling weakened financials

Illinois Tool Works Inc. has a net debt to EBITDA ratio of 1.75x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Illinois Tool Works Inc.'s interest coverage ratio of 14.45 indicates that earnings with good margin can cover interest payments on company debt

Illinois Tool Works Inc.'s profit margin has decreased (11.60%) in the last year from 21.94% to 19.39%, signaling decreasing performance

Illinois Tool Works Inc.'s short-term assets of $6.20B exceed its short-term liabilities of $5.13B

Illinois Tool Works Inc.'s return on assets of 19.36% is higher than the 5.00% threshold, indicating efficient asset utilization

Illinois Tool Works Inc.'s return on equity of 101.74%, is higher than 15.00%, indicating good performance

Illinois Tool Works Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Illinois Tool Works Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Illinois Tool Works Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Illinois Tool Works Inc. has a free cash flow yield of 3.19%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Illinois Tool Works Inc.'s yearly earnings has decreased 12.10% since last year from $3.49B to $3.07B, signaling decreasing performance

Illinois Tool Works Inc.'s yearly revenue has increased 0.92% since last year from $15.90B to $16.04B, signaling increasing performance

ROIC 24.71% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Illinois Tool Works Inc.'s 3-year revenue CAGR of 0.23% is positive, indicating growing revenue over the past 3 years

Illinois Tool Works Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Illinois Tool Works Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Illinois Tool Works Inc. is overvalued relative to its fair value price of 86.79 based on Discounted Cash Flow model

Illinois Tool Works Inc. has an earnings yield of 3.79%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Illinois Tool Works Inc. is overvalued relative to its fair value price of 84.78 based on EBITDA multiple model

Illinois Tool Works Inc. has an EV/EBITDA ratio of 19.97x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Illinois Tool Works Inc. is overvalued relative to its fair value price of 200.21 based on Earnings Fair Value model

Illinois Tool Works Inc. has a PEG-ratio over 1 which is considered overvalued

Illinois Tool Works Inc. has a price-to-book ratio of 29.08x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Illinois Tool Works Inc. has a price-to-sales ratio of 5.12x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue