Is ITW halal?
Illinois Tool Works Inc.
Halal
Illinois Tool Works Inc. passed every check under AAOIFI Shariah standard No. 21: no prohibited business activity, and all three financial ratios are within limits.
Checked: 14 October 2026
Exchange
NYSE
Price
272.28
Day
+0.40%
Market cap
$75.94B
Industry
Specialty Industrial Machinery
Sector
Industrials
What the company does
Illinois Tool Works runs 80+ industrial businesses: automotive components, food equipment, welding (Miller), test instruments, construction products and specialty packaging. Its money comes from industrial-product sales.
What was checked
The AAOIFI standard has four steps: business activity first, then three financial ratios. Fail one and the stock is not halal.
Business activity
No prohibited activity
Interest-bearing debt / market cap
limit 30%
Interest-bearing debt $9.69B ÷ 36-month average market cap $74.99B = 12.9%
12.9%
Pass
Cash & investments / market cap
limit 30%
Cash + interest-bearing securities $839.00M ÷ 36-month average market cap $74.99B = 1.1%
1.1%
Pass
Non-compliant income / total revenue
limit 5%
Interest income $40.00M ÷ annual revenue $16.04B (2025) = 0.3%
0.3%
Pass
Figures from the company's filings (2026-06-30), USD. Market cap is a 36-month average (the S&P Shariah index approach), so a one-day price move does not flip the verdict. Today's market cap: $75.94B.
For information (AAOIFI 3/1 note): cash + receivables are 26.7% of total assets (2026-06-30). AAOIFI recommends tangible assets of at least one third — this figure does not affect the verdict, and other major screeners do not apply it either.
In the lists
- In the S&P 500
- 0.10% weight · #171 of 503
- Among halal stocks
- 0.11% · #117 of 1454
- Held by funds
- SPUS 0.19%
- Dividend
- 2.42% · purify 0.3% · net 2.41%
Superinvestors
SEC 13F, 2026 Q3. Up to 45 days delayed.Held by 2 superinvestors · Average reported price: $270.47
- Steven CheckCheck Capital Management$595K0.0%
- Mairs & Power Funds$415K0.0%
Halal stocks in the same industry
The largest halal stocks in Specialty Industrial Machinery — for comparison.
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Halal is the first question. The second: when to enter?
Our scanner watches 1454 halal stocks around the clock and fires a signal with entry, TP and SL when a technical setup completes. The full signal history — with outcomes — is public.
This is neither investment advice nor a fatwa. Screening is based on public financial statements and AAOIFI standard No. 21; data may lag. For a personal decision consult your own scholar.