Aureus
AExcellent

Illinois Tool Works Inc.(ITW)

A

Financial data as of Dec 31, 2025Declining · Industrials

FCF Margin16.9%Free Cash Flow / Revenue
Cash Conversion102.0%Operating CF / Net Income
Free Cash Flow$2.7B
Revenue$16.0B
Net Cash-$8.4BNet debt position
Debt / FCF3.4xElevated debt burden
Current Ratio1.21Adequate short-term liquidity
YoY FCF Growth-13.9%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (16.9%, 3.4x)
→
-0.5Moderate decline but healthy margin (-13.9% YoY)
→
FinalA

Analysis Summary

Strengths

  • Strong FCF margin (16.9%)
  • Excellent cash conversion (102%)

Concerns

  • Net debt position ($8.4B) — 3.4x FCF, manageable
  • FCF trend declining (-13.9% YoY) but margin still healthy

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin16.9%
Net Margin19.1%
Operating CF Margin19.5%
CapEx Ratio2.6%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$8.4BNet debt position
Debt / FCF3.4xElevated debt burden
Current Ratio1.21Adequate liquidity
Debt / Equity2.86High leverage

Quarterly FCF Trend

-13.9% YoYDeclining (-13.9%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameIllinois Tool Works Inc.
SectorIndustrials
Free Cash Flow$2.7B
Revenue$16.0B
Net Income$3.1B
Operating Cash Flow$3.1B
Capital Expenditure$419.0M
FCF Margin16.9%
Cash Conversion Rate102.0%
Net Margin19.1%
Total Debt$9.2B
Total Cash$851.0M
Net Cash-$8.4B
Current Ratio1.21
Debt / Equity2.86
Debt / FCF3.4x
YoY FCF Growth-13.9%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance