ITWCAUTIOUS

Debt-to-Equity Ratio

2.83x

Updated 318h ago

Sector Performance

93th percentile

ITW

2.83x

Sector Median

0.73x

Sector Avg

0.08x

📊

Deep Analysis

The Debt-to-Equity ratio compares total debt to shareholders’ equity; at 2.83x, ITW has $2.83 of debt for every $1 of equity, indicating a high reliance on borrowed funds.

This ratio sits well above the sector median of 0.73x and places the company in the 93rd percentile among peers, meaning it carries more debt than nearly all comparable firms. No year-over-year or quarter-over-quarter changes are available, so the trend direction is not established. The combination of a high debt level with an unknown trend points to elevated financial risk—without recent declines, the leverage remains a concern for stability. This metric directly supports the CAUTIOUS overall verdict, as the elevated debt-to-equity ratio increases vulnerability to interest rate changes and economic downturns.

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: ETSY (-2.62x), MCK (-3.00x), TDG (-3.40x), VRSK (-3.81x), MAR (-4.04x).

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.

Advertisement

Master ITW's Valuation

Get the complete institutional research report covering all fundamental and technical metrics.

View full ITW research report

Free account — no credit card

ITW

2.83x

Sector Median

0.73x

Sector Avg

0.08x

How ITW's Debt-to-Equity Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.