Is Illinois Tool Works Inc. (ITW) halal? Halal. Based on AAOIFI screening, Illinois Tool Works Inc. passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 90/100 (Grade: A+).

Illinois Tool Works Inc.

ITW: Is Illinois Tool Works Inc. Halal?

Halal

Illinois Tool Works Inc.

NYSEIndustrialsUS

$262.11

-0.13%

Purify ~0.3% of income

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 路 Industry: Industrial - Machinery

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 16, 2026
A+

Excellent

Exceptionally strong compliance

90Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Passed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap9.4% / 30.0%

Compliance History

Halal, unchanged since Jun 2026.

No status changes recorded since we began tracking.

Tracked since Jun 2026. Updates automatically on each re-screen.

Screened: Jun 16, 2026Fiscal: Q1 2026Source: EDGAR

Purify Your ITW Dividends

0.3% non-compliant income

ITW has 0.3% prohibited income. Calculate exactly how much of your dividends to donate.

Financial Overview

Market Cap

75.4B

Price

$262.11

Sector

Industrials

Industry

Industrial - Machinery

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Frequently Asked Questions

Is Illinois Tool Works Inc. (ITW) halal to invest in?
Based on AAOIFI Standard 21 screening, Illinois Tool Works Inc. (ITW) is rated Halal with a compliance grade of A+ (Excellent). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).
Why did Illinois Tool Works Inc. get a A+ compliance rating?
Illinois Tool Works Inc. (ITW) received a grade of A+ (Excellent) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 9.4% (limit 30%); interest-bearing deposits of 1.1% (limit 30%); prohibited income of 0.32% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Illinois Tool Works Inc.'s Shariah verdict?
Illinois Tool Works Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Illinois Tool Works Inc. re-screened for Shariah compliance?
Illinois Tool Works Inc. (ITW) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jun 16, 2026.

Screened according to AAOIFI Standard No. 21 路 For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.