ITT Inc (ITT)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 489,200 | 561,200 | 647,500 | 859,800 | 612,100 |
| Short-term investments | US$ in thousands | 0 | 0 | 0 | 0 | 0 |
| Total current liabilities | US$ in thousands | 1,037,800 | 1,185,500 | 928,300 | 871,000 | 849,700 |
| Cash ratio | 0.47 | 0.47 | 0.70 | 0.99 | 0.72 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($489,200K
+ $0K)
÷ $1,037,800K
= 0.47
The cash ratio of ITT Inc has fluctuated over the past five years, ranging from 0.58 in 2023 to 1.20 in 2020. The trend indicates a decline in the company's ability to cover its short-term liabilities solely with cash and cash equivalents. In 2023, the cash ratio stands at 0.58, suggesting that the company has $0.58 of cash and cash equivalents for every $1 of current liabilities. This may raise concerns about the company's liquidity position and its ability to meet its short-term financial obligations. Further analysis of the company's cash management strategies and working capital efficiency may be warranted to address this decline in the cash ratio.
Peer comparison
Dec 31, 2023