Summary
Illinois Tool Works Inc. (ITW) filed an 8-K on April 25, 2019, reporting its first-quarter 2019 results. The filing primarily serves to furnish a press release detailing the company's financial performance for the quarter ended March 31, 2019. Investors should note that the company highlighted its use of non-GAAP financial measures, specifically free cash flow and adjusted after-tax return on average invested capital (ROIC), to provide a more operational view of its performance. These metrics are defined and reconciled in the accompanying press release, with ITW emphasizing their utility in assessing cash generation available for shareholder returns and capital allocation, as well as the efficiency of capital deployment in its operations.
Key Highlights
- 1ITW announced its first-quarter 2019 financial results on April 25, 2019.
- 2The company furnished a press release containing its Q1 2019 operational results.
- 3ITW emphasized the use of Free Cash Flow as a key non-GAAP metric for investors.
- 4Free Cash Flow is defined as net cash from operations less additions to plant and equipment.
- 5The company also highlighted Adjusted After-Tax Return on Average Invested Capital (ROIC) as a performance indicator.
- 6ROIC measures the effectiveness of operations in generating profits from invested capital.
- 7Discreet tax benefits from prior periods were excluded for comparability in ROIC calculations.