ITW Debt-to-Equity Ratio Analysis
Updated 273h ago·SEC filings & market data
Key Takeaway
The debt-to-equity ratio shows how much debt a company uses compared to its own equity; at 3.35x, ITW has $3.35 of debt for every $1 of equity.
Sector Performance
93th percentileITW
3.35x
Sector Median
0.74x
Sector Avg
2.51x
Prior Period
2.83x(Aug 2026)
Deep Analysis
The debt-to-equity ratio shows how much debt a company uses compared to its own equity; at 3.35x, ITW has $3.35 of debt for every $1 of equity.
That level is far above the sector median of 0.74x, placing ITW in the 93rd percentile among peers, meaning nearly all comparable companies carry less leverage. The year-over-year change is not available, but the quarter-over-quarter increase is +18.4%, rising from 2.83x to the current 3.35x. Higher debt amplifies fixed interest costs and can strain cash flow if earnings weaken, so this combination of a very high level and a sharp quarterly jump raises financial risk. The upward trend adds pressure alongside the already elevated ratio, suggesting limited near-term flexibility for borrowing or absorbing shocks. This metric directly supports the overall CAUTIOUS verdict because the leverage profile is both extreme relative to peers and deteriorating.
Frequently Asked Questions
What does the Debt-to-Equity Ratio tell investors about ITW?
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
How is the Debt-to-Equity Ratio calculated?
Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.
Who are ITW's closest peers by Debt-to-Equity Ratio?
The closest peers by Debt-to-Equity Ratio include: TAP (0.76x), PCAR (0.72x), O (0.78x), PRU (0.78x), KIM (0.85x).
Learn More About Debt-to-Equity Ratio
How to Spot a Debt Problem Before It Hits the Stock Price
Learn how to spot a debt problem in stocks using D/E, interest coverage, and net debt/EBITDA ratios. Real examples from META and MSFT, plus danger thresholds you need to know.
Debt/Equity Ratio: How Much Debt Is Too Much?
The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.
The Formula
Total Debt / Shareholders' Equity
Why It Matters
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
Master ITW's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full ITW research report →ITW
3.35x
Sector Median
0.74x
Sector Avg
2.51x
How ITW's Debt-to-Equity Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.