ITT Inc (ITT)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 439,300 489,200 561,200 647,500 859,800
Short-term investments US$ in thousands 0 0 0 0 0
Total current liabilities US$ in thousands 1,333,200 1,037,800 1,185,500 928,300 871,000
Cash ratio 0.33 0.47 0.47 0.70 0.99

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($439,300K + $0K) ÷ $1,333,200K
= 0.33

The cash ratio of ITT Inc has shown a declining trend over the past few years, decreasing from 0.99 in December 2020 to 0.33 in December 2024. This indicates that the company's ability to cover its short-term liabilities with its available cash and cash equivalents has weakened. A decreasing cash ratio may suggest potential liquidity challenges or inefficiencies in managing cash resources. It is essential for ITT Inc to closely monitor its cash position and work towards improving its liquidity management to ensure it can meet its financial obligations in a timely manner.