Illinois Tool Works (MEX:ITW) Effective Interest Rate on Debt %: 3.18% (As of Mar. 2026)

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MEX:ITW Illinois Tool Works Inc MEX:ITW
85 GF Score
Price MXN4,485.30
GF Value MXN4,404.98
! 3 Warning Signs
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What is Illinois Tool Works Effective Interest Rate on Debt %?

Illinois Tool Works MEX:ITW 85 Effective Interest Rate on Debt % is 3.18% as of Mar. 2026. GuruFocus rates MEX:ITW with a GF Score™ of 85/100 and a GF Value™ of MXN4,404.98. The stock has 3 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Illinois Tool Works's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was MXN5,266 Mil. Illinois Tool Works's average total debt for the quarter that ended in Mar. 2026 was MXN165,407 Mil. Therefore, Illinois Tool Works's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 3.18%.


Illinois Tool Works  (MEX:ITW) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Illinois Tool Works Effective Interest Rate on Debt % Related Terms


Illinois Tool Works Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Illinois Tool Works's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Illinois Tool Works Effective Interest Rate on Debt % Chart

Illinois Tool Works Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.53 2.50 3.04 3.80 3.15

Illinois Tool Works Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.30 3.30 3.31 3.27 3.18

MEX:ITW vs EMR, CMI, AME: Effective Interest Rate on Debt % Comparison

For the Specialty Industrial Machinery subindustry, Illinois Tool Works's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Illinois Tool Works Effective Interest Rate on Debt % vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Illinois Tool Works's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Illinois Tool Works's Effective Interest Rate on Debt % falls into.


MEX:ITW
85GF Score
Illinois Tool Works Inc MEX:ITW
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Illinois Tool Works Effective Interest Rate on Debt % Calculation

Illinois Tool Works's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -5257.664/( (168472.344+165850.503)/ 2 )
=-1  *  -5257.664/167161.4235
=3.15 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=134852.956 + 33619.388
=168472.344

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=123573.119 + 42277.384
=165850.503

Illinois Tool Works's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -5265.548/( (165850.503+164963.14)/ 2 )
=-1  *  -5265.548/165406.8215
=3.18 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=123573.119 + 42277.384
=165850.503

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=119069.918 + 45893.222
=164963.14

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 3.18% mean?
Illinois Tool Works (MEX:ITW) has a Effective Interest Rate on Debt % of 3.18% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Illinois Tool Works and its competitors.
Is Illinois Tool Works' Effective Interest Rate on Debt % too high?
Illinois Tool Works' current Effective Interest Rate on Debt % is 3.18%. Overall, Illinois Tool Works has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Illinois Tool Works' Effective Interest Rate on Debt % compare to EMR and CMI?
Illinois Tool Works' Effective Interest Rate on Debt % of 3.18% can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for an Industrial Products company?
A good Effective Interest Rate on Debt % depends on the Industrial Products industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Illinois Tool Works and its competitors. Illinois Tool Works's current Effective Interest Rate on Debt % is 3.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Illinois Tool Works stock overvalued right now?
Illinois Tool Works (MEX:ITW) has a current Effective Interest Rate on Debt % of 3.18%. The stock's GF Value™ is MXN4,404.98, compared to a current price of MXN4,485.30 — trading 1.8% above its estimated fair value. The current Effective Interest Rate on Debt % is 3.18%. Illinois Tool Works' overall GF Score™ is 85/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Illinois Tool Works (MEX:ITW), the current Effective Interest Rate on Debt % is 3.18% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Illinois Tool Works (MEX:ITW) Overvalued in 2026?

Based on GuruFocus' analysis, Illinois Tool Works stock appears to be overvalued. The current stock price of MXN4,485.30 is trading 1.8% above its estimated GF Value™ of MXN4,404.98.

Key valuation signals for MEX:ITW:

  • Effective Interest Rate on Debt %: 3.18%
  • GF Value™: MXN4,404.98 vs. price of MXN4,485.30 (1.8% above fair value)
  • GF Score™: 85/100 with 3 warning signs

No single metric tells the full story. See the MEX:ITW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Illinois Tool Works Business Description

Address 155 Harlem Avenue, Glenview, IL, USA, 60025
Founded in 1912, Illinois Tool Works has become a diversified industrial manufacturer through acquisitions and innovations that follow customer needs. ITW operates through seven business segments, with no segment representing more than one-fifth of revenue. ITW's automotive OEM segment sells vehicle components; its food equipment segment sells commercial kitchen appliances; its test and measurement and electronics segment sells inspection and analysis equipment; its welding segment sells welding equipment and consumables; its polymers and fluids segment sells industrial and consumer adhesives, solvents, and coatings; its construction products segment sells building fasteners and tools; and its specialty products segment sells medical, packaging, HVAC, and airport ground equipment.
85GF Score

Get the complete analysis for MEX:ITW

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN4,485.30
Price
MXN4,404.98
GF Value