ITT Inc (ITT)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 1,864,700 1,857,700 1,836,800 1,722,100 1,917,300
Total current liabilities US$ in thousands 1,333,200 1,037,800 1,185,500 928,300 871,000
Current ratio 1.40 1.79 1.55 1.86 2.20

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,864,700K ÷ $1,333,200K
= 1.40

The current ratio of ITT Inc has shown a gradual decline from 2.20 in December 31, 2020, to 1.40 in December 31, 2024. This indicates that the company's ability to cover its short-term liabilities with current assets has weakened over the years. While a current ratio above 1 suggests that ITT Inc is able to meet its short-term obligations, the decreasing trend raises concerns about liquidity management and potential difficulties in repaying short-term debts. Furthermore, a current ratio of 1.40 in December 31, 2024 indicates a lower cushion for unforeseen financial challenges compared to the previous years. ITT Inc may need to closely monitor its liquidity position and consider strategies to improve its current ratio going forward.