Illinois Tool WorksFRA:ILT +2.45%84 Interest Coverage is 13.97 as of Mar. 2026, which is 5% below its 10-year median of 14.76. GuruFocus rates FRA:ILT with a GF Score™ of 84/100 and a GF Value™ of €230.39 (Fairly Valued). The stock has 2 warning signs investors should review. Among 2,329 Industrial Products companies, Illinois Tool Works ranks worse than 50.54% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Illinois Tool Works's
Operating Income
for the
three
months ended in Mar. 2026 was €882 Mil. Illinois Tool Works's Interest Expense for the
three
months ended in Mar. 2026 was €-63 Mil.
Illinois Tool Works's interest coverage for the quarter that ended in Mar. 2026 was 13.97.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Illinois Tool Works's Interest Coverage or its related term are showing as below:
FRA:ILT'
s Interest Coverage Range Over the Past 10 Years
Min: 12.89 Med: 14.76 Max: 18.67
Current: 14.43
FRA:ILT's Interest Coverage is ranked worse than 50.54% of 2329
companies
in the Industrial Products industry
Industry Median: 14.79
vs FRA:ILT: 14.43
Illinois Tool Works (FRA:ILT) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Illinois Tool Works Interest Coverage Related Terms
Illinois Tool Works Interest Coverage Historical Data
* Premium members only.
The historical data trend for Illinois Tool Works's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:ILT vs EMR, CMI, AME: Interest Coverage Comparison
For the Specialty Industrial Machinery subindustry, Illinois Tool Works's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Illinois Tool Works's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Illinois Tool Works's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (FRA:ILT) has a Interest Coverage of 13.97 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Illinois Tool Works and its competitors. This is near median its historical median of 14.76. Over the past decade, Illinois Tool Works' Interest Coverage has ranged from 12.89 to 18.67. According to the industry distribution chart, Illinois Tool Works ranks #1177 out of 2329 companies in the Industrial Products industry, placing it in the top 50.5%.
Is Illinois Tool Works' Interest Coverage too high?
Illinois Tool Works' current Interest Coverage of 13.97 is near median its 10-year median of 14.76. Over the past 10 years, this metric has ranged from a low of 12.89 to a high of 18.67. The Industrial Products industry median Interest Coverage is 14.79. Illinois Tool Works' value of 13.97 is 5.5% below this industry median. Based on the distribution chart, Illinois Tool Works ranks #1177 out of 2329 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Illinois Tool Works has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Illinois Tool Works' Interest Coverage compare to EMR and CMI?
According to the Industrial Products industry distribution chart, Illinois Tool Works ranks #1177 out of 2329 companies for Interest Coverage. This places Illinois Tool Works in the lower half of its industry. The industry median Interest Coverage is 14.79. Illinois Tool Works' value of 13.97 is 5.5% below this benchmark. Historically, Illinois Tool Works' own Interest Coverage has ranged from 12.89 to 18.67 over the past decade. While the company's 10-year median is 14.76 vs. the industry median of 14.79, Illinois Tool Works has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.79, based on 2,329 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Illinois Tool Works's current Interest Coverage of 13.97 is 5.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Illinois Tool Works and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Illinois Tool Works's current Interest Coverage is 13.97, which is near median its own 10-year median of 14.76. 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?
Based on GuruFocus' analysis, Illinois Tool Works (FRA:ILT) is currently considered Fairly Valued. The stock's GF Value™ is €230.39, compared to a current price of €234.40 — trading 1.7% above its estimated fair value. The current Interest Coverage is 13.97, which is near median its 10-year median of 14.76 and 5.5% below the Industrial Products industry median of 14.79. Illinois Tool Works' overall GF Score™ is 84/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Illinois Tool Works (FRA:ILT), the current Interest Coverage is 13.97 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 (FRA:ILT) Overvalued in 2026?
Based on GuruFocus' analysis, Illinois Tool Works stock appears to be overvalued.
The current stock price of €234.40 is trading 1.7% above its estimated GF Value™ of €230.39.
GuruFocus considers Illinois Tool Works to be Fairly Valued.
Key valuation signals for FRA:ILT:
Interest Coverage: 13.97 (near median its 10-year median of 14.76)
GF Value™: €230.39 vs. price of €234.40 (1.7% above fair value)
Industry Position: 5.5% below the Industrial Products median (#1177 of 2329)
No single metric tells the full story. See the FRA:ILT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
84GF Score
Get the complete analysis for FRA:ILT
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