Illinois Tool Works Inc. — Earnings Quality Grade F
ITW · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 73 days, change +5 days YoY
AR growth 7.9% vs revenue growth 0.9%
Revenue 0.9%, CFFO -4.7%. Cash follows revenue
Expense Quality
Inventory 3.4% vs COGS 1.3%. Normal
CapEx growth -4.1% vs revenue 0.9%. Normal
SG&A/Gross Profit = 39.3%. Normal
Gross margin 44.1%, change -0.2pp. Stable
Cash Flow Quality
CFFO/NI = 1.02. Profits backed by cash
FCF $2.7B, FCF/NI = 0.88
Accruals ratio = -0.4%. Low accruals
Cash $0.9B covers only 9% of debt $9.2B
Balance Sheet Health
Goodwill+Intangibles $5.7B = 176% of equity. Over 50%
Debt/EBITDA = 2.0x. Healthy
Other assets 3.0% vs revenue 0.9%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 5% YoY. Normal
Manipulation Score
M-Score = -2.43 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09