Illinois Tool Works Inc. (ITW) FCF Payout Ratio: 67.55%
Is Illinois Tool Works Inc.’s FCF payout ratio high or low?
Illinois Tool Works Inc.'s FCF payout ratio of 67.55% is in line with its 5-year average of 62.65%, around the middle of its 5-year range (52.37%–79.65%).
The FCF payout ratio for Illinois Tool Works Inc. (ITW) is 67.55%. It is above its 12-month average by 7.62% (62.77%).
ITW FCF Payout Ratio Chart
ITW Average FCF Payout Ratio Chart
ITW Current vs Average FCF Payout Ratio Chart
ITW FCF Payout Ratio Metrics
FCF PAYOUT RATIO
67.55%
FCF PAYOUT RATIO AVG TTM
62.77%
FCF PAYOUT RATIO AVG 3Y
64.39%
FCF PAYOUT RATIO AVG 5Y
62.65%
FCF PAYOUT RATIO AVG 10Y
53.94%
FCF PAYOUT RATIO AVG 15Y
51.12%
FCF PAYOUT RATIO AVG 20Y
45.26%
CURRENT VS TTM AVG
+7.62%
CURRENT VS 3Y AVG
+4.91%
CURRENT VS 5Y AVG
+7.82%
CURRENT VS 10Y AVG
+25.24%
CURRENT VS 15Y AVG
+32.13%
CURRENT VS 20Y AVG
+49.26%
Payout Ratio Comparison
FCF Payout Ratio
67.5%
Earnings Payout Ratio
60.2%
Dividend Yield
2.47%
FCF Yield
3.69%
Annual FCF Payout Ratio History
| Year | Free Cash Flow | Dividends Paid | FCF Payout Ratio |
|---|---|---|---|
| 2025 | $2.71B | $1.78B | 65.9% |
| 2024 | $2.84B | $1.70B | 59.6% |
| 2023 | $3.08B | $1.61B | 52.4% |
| 2022 | $1.94B | $1.54B | 79.6% |
| 2021 | $2.26B | $1.46B | 64.7% |
| 2020 | $2.57B | $1.38B | 53.6% |
| 2019 | $2.67B | $1.32B | 49.5% |
| 2018 | $2.45B | $1.12B | 45.9% |
| 2017 | $2.10B | $941.00M | 44.7% |
| 2016 | $2.03B | $821.00M | 40.5% |
| 2015 | $2.02B | $742.00M | 36.8% |
| 2014 | $1.25B | $711.00M | 56.7% |
| 2013 | $2.16B | $528.00M | 24.4% |
| 2012 | $1.69B | $865.00M | 51.2% |
| 2011 | $1.60B | $680.28M | 42.4% |
| 2010 | $1.27B | $636.20M | 49.9% |
| 2009 | $1.90B | $619.68M | 32.6% |
| 2008 | $1.87B | $598.69M | 32.1% |
| 2007 | $2.13B | $502.43M | 23.6% |
| 2006 | $1.77B | $398.85M | 22.6% |
| 2005 | $1.55B | $335.09M | 21.6% |
| 2004 | $1.25B | $304.58M | 24.4% |
| 2003 | $1.11B | $285.40M | 25.7% |
| 2002 | $1.02B | $272.32M | 26.8% |
| 2001 | $1.09B | $249.14M | 22.8% |
| 2000 | $808.50M | $223.01M | 27.6% |
| 1999 | ($104.90M) | $183.60M | N/A (Loss) |
| 1998 | ($238.40M) | $127.40M | N/A (Loss) |
| 1997 | $481.60M | $107.10M | 22.2% |
| 1996 | $460.70M | $85.50M | 18.6% |
Formula: FCF Payout Ratio = Dividends Paid / Free Cash Flow × 100
FCF payout and earnings payout:
- FCF represents operating cash flow after capital expenditures
- FCF payout compares dividends paid with free cash flow
- FCF payout above 100% means dividends paid exceeded free cash flow for the period
- Earnings payout compares dividends paid with net income
Reading the series: Use the chart and table to compare dividend payments with cash generation over time.
Illinois Tool Works Inc. FCF Payout Ratio Formula & Definition
FCF Payout Ratio measures what percentage of free cash flow is paid out as dividends. Unlike earnings-based payout, it compares dividends with cash generated after capital expenditures.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
Illinois Tool Works Inc. FCF Payout Ratio FAQ
- What is the FCF payout ratio for Illinois Tool Works Inc. (ITW)?
- The FCF payout ratio for ITW stock is 67.55%.
- Is Illinois Tool Works Inc.'s FCF payout ratio high or low?
- Illinois Tool Works Inc.'s FCF payout ratio of 67.55% is in line with its 5-year average of 62.65%, around the middle of its 5-year range (52.37%–79.65%).
- What is the TTM average FCF payout ratio for Illinois Tool Works Inc. (ITW)?
- The TTM average FCF payout ratio for ITW stock is 62.77%.
- What is the 3Y average FCF payout ratio for Illinois Tool Works Inc. (ITW)?
- The 3Y average FCF payout ratio for ITW stock is 64.39%.
- What is the 5Y average FCF payout ratio for Illinois Tool Works Inc. (ITW)?
- The 5Y average FCF payout ratio for ITW stock is 62.65%.
- What is the 10Y average FCF payout ratio for Illinois Tool Works Inc. (ITW)?
- The 10Y average FCF payout ratio for ITW stock is 53.94%.
- What is the 15Y average FCF payout ratio for Illinois Tool Works Inc. (ITW)?
- The 15Y average FCF payout ratio for ITW stock is 51.12%.
- What is the 20Y average FCF payout ratio for Illinois Tool Works Inc. (ITW)?
- The 20Y average FCF payout ratio for ITW stock is 45.26%.
Illinois Tool Works Inc. FCF Payout Ratio History
| DATE | FCF PAYOUT RATIO |
|---|---|
| 2025-12-31 | 65.94% |
| 2024-12-31 | 59.60% |
| 2023-12-31 | 52.37% |
| 2022-12-31 | 79.65% |
| 2021-12-31 | 64.71% |
| 2020-12-31 | 53.64% |
| 2019-12-31 | 49.49% |
| 2018-12-31 | 45.93% |
| 2017-12-31 | 44.70% |
| 2016-12-31 | 40.46% |
| 2015-12-31 | 36.82% |
| 2014-12-31 | 56.65% |
| 2013-12-31 | 24.44% |
| 2012-12-31 | 51.18% |
| 2011-12-31 | 42.45% |
| 2010-12-31 | 49.91% |
| 2009-12-31 | 32.62% |
| 2008-12-31 | 32.06% |
| 2007-12-31 | 23.58% |
| 2006-12-31 | 22.60% |
| 2005-12-31 | 21.57% |
| 2004-12-31 | 24.38% |
| 2003-12-31 | 25.70% |
| 2002-12-31 | 26.77% |
| 2001-12-31 | 22.76% |
| 2000-12-31 | 27.58% |
| 1997-12-31 | 22.24% |
| 1996-12-31 | 18.56% |
About Illinois Tool Works Inc.
Illinois Tool Works Inc. is a global enterprise specializing in the production and distribution of a wide array of industrial goods and specialized equipment. The company operates through seven distinct divisions: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM division supplies plastic and metal components, various fastening solutions, and integrated assemblies for automobiles, light-duty trucks, and other industrial applications. Its Food Equipment segment delivers commercial kitchen appliances for washing, refrigeration, cooking, and food processing, alongside comprehensive kitchen exhaust, ventilation, and pollution control systems, and offers related maintenance and repair services. The Test & Measurement and Electronics unit manufactures and sells machinery, expendable supplies, and accompanying software designed for assessing materials and structural integrity, in addition to equipment and consumables critical for the creation of electronic subassemblies and microelectronic components. The Welding division focuses on arc welding apparatus, coupled with metal arc welding consumables and associated accessories. The Polymers & Fluids segment produces adhesives, sealing compounds, lubrication and cutting fluids, and various fluids and polymers intended for automotive aftermarket upkeep and cosmetic purposes. The Construction Products segment provides purpose-engineered fastening systems and comprehensive solutions for new housing, renovation projects, and commercial building industries. Lastly, the Specialty Products segment delivers machinery and supplies for beverage packaging, equipment and expendables for product identification and marking, and specialized components and fasteners for appliances. ITW's broad clientele encompasses sectors such as automotive original equipment manufacturers (OEMs) and their suppliers, the commercial food service industry, construction companies, general industrial enterprises, and the automotive aftermarket. The corporation distributes its offerings directly to industrial manufacturers and via an extensive network of independent distributors. Established in 1912, Illinois Tool Works Inc. is headquartered in Glenview, Illinois.
- Sector
- Industrials
- Industry
- Industrial - Machinery
- CEO
- Christopher A. O'Herlihy