Is ILLINOIS TOOL WORKS INC (ITW) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 11.5% / 30% | 1.1% / 30% | 4.3% / 30% | 0.25% / 5% | ✓ HALAL |
| DJIM | 11.5% / 33% | 1.1% / 33% | 4.3% / 33% | 0.25% / 5% | ✓ HALAL |
| MSCI | 57.0% / 33% | 5.3% / 33% | 21.1% / 33% | 0.25% / 5% | ✗ NOT HALAL |
| S&P | 11.5% / 33% | 1.1% / 33% | 4.3% / 33% | 0.25% / 5% | ✓ HALAL |
| FTSE | 57.0% / 33% | 5.3% / 33% | 21.1% / 50% | 0.25% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 44.1% | |
| Operating Margin | 26.8% | |
| Net Margin | 19.1% | |
| Return on Equity (ROE) | 93.7% | |
| Return on Assets (ROA) | 17.1% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $3.1B |
| Free Cash Flow | $2.7B |
| Total Debt | $9.2B |
| Debt-to-Equity | 285.5 |
| Current Ratio | 1.2 |
| Total Assets | $16.1B |
Price & Trading
| Last Close | $261.37 |
| 50-Day MA | $276.03 |
| 200-Day MA | $259.41 |
| Avg Volume | 1.4M |
| Beta | 1.1 |
|
52-Week Range
$214.66
| |
About ILLINOIS TOOL WORKS INC (ITW)
Illinois Tool Works Inc. provides industrial products and equipment in North America, Europe, the Middle East, Africa, the Asia Pacific, and South America. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses. The Food Equipment segment provides warewashing, cooking, refrigeration, and food processing equipment; kitchen exhaust, ventilation, and pollution control systems; and food equipment maintenance and repair services. The Test & Measurement and Electronics segment produce and sells test and measurement; and electronic manufacturing and maintenance, repair, and operations solutions. The Welding segment produces arc welding equipment, and metal arc welding consumables and related accessories. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance. The Construction Products segment offers engineered fastening systems and solutions for the residential construction, renovation/remodel, and commercial construction markets. The Specialty Products segment provides beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. The company serves automotive OEM and aftermarket, commercial food equipment, construction, general industrial, industrial capital goods, consumer durables, and other markets, as well as MRO markets. It distributes its products directly to industrial manufacturers, as well as through independent distributors. Illinois Tool Works Inc. was founded in 1912 and is based in Glenview, Illinois.
Purification Calculator
As a halal stock with 0.25% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is ILLINOIS TOOL WORKS INC (ITW) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), ILLINOIS TOOL WORKS INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is ILLINOIS TOOL WORKS INC's debt ratio?
ILLINOIS TOOL WORKS INC's debt ratio is 11.5% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 57.0%.
Does ILLINOIS TOOL WORKS INC require dividend purification?
Yes, ILLINOIS TOOL WORKS INC has an impermissible income ratio of 0.25%, which means 0.25% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are ILLINOIS TOOL WORKS INC's key financial metrics?
ILLINOIS TOOL WORKS INC has a market capitalization of $74.7B, trailing P/E ratio of 24.7, and revenue of $16.0B. The company maintains a gross margin of 44.1% and a net margin of 19.1%. Return on equity stands at 93.7%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.