ITT Inc (ITT)

Cash ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Cash and cash equivalents US$ in thousands 439,300 460,900 425,500 423,000 489,200 430,800 462,100 462,000 561,200 514,500 525,700 710,400 647,500 585,800 578,800 780,200 859,800 782,300 819,100 839,900
Short-term investments US$ in thousands 0 — — — 0 — — — 0 — — — 0 — — — 0 — — —
Total current liabilities US$ in thousands 1,333,200 1,274,700 1,241,400 1,197,000 1,037,800 1,044,000 1,174,100 1,121,400 1,185,500 1,269,100 1,303,400 1,242,300 928,300 899,200 900,000 826,500 871,000 866,000 947,600 1,107,000
Cash ratio 0.33 0.36 0.34 0.35 0.47 0.41 0.39 0.41 0.47 0.41 0.40 0.57 0.70 0.65 0.64 0.94 0.99 0.90 0.86 0.76

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 some fluctuations over the periods provided. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

Starting at 0.76 in March 2020, the ratio increased steadily to 0.99 by December 2020, indicating an improvement in the company's liquidity position. However, from March 2021 to June 2022, the ratio declined continuously, reaching its lowest point of 0.34 in June 2024.

A cash ratio below 1 suggests that ITT Inc may not have enough liquid assets to cover its current liabilities. The decreasing trend in the ratio from 2021 to 2024 may raise concerns about the company's ability to meet its short-term obligations solely based on its cash reserves. Management should closely monitor and possibly take measures to improve the liquidity position to ensure financial stability and meet its obligations in a timely manner.