ITT Inc (ITT)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,857,700 | 1,836,800 | 1,722,100 | 1,917,300 | 1,736,800 |
| Total current liabilities | US$ in thousands | 1,037,800 | 1,185,500 | 928,300 | 871,000 | 849,700 |
| Current ratio | 1.79 | 1.55 | 1.86 | 2.20 | 2.04 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,857,700K ÷ $1,037,800K
= 1.79
The current ratio of ITT Inc has fluctuated over the past five years, indicating changes in the company's liquidity position and ability to meet short-term obligations.
- In 2019 and 2020, the company had a relatively strong current ratio of 2.04 and 2.20, respectively, suggesting a comfortable level of current assets to cover current liabilities.
- However, there was a decrease in the current ratio to 1.86 in 2021, indicating a slight decline in liquidity compared to the previous years.
- The ratio further decreased to 1.55 in 2022, which may raise concerns about the company's short-term liquidity position and its ability to meet its current obligations.
- In 2023, the current ratio improved to 1.79, but it is still below the ratios observed in 2019 and 2020.
Overall, the trend in the current ratio of ITT Inc shows some variability, with fluctuations that may reflect changes in the company's working capital management or shifts in its current asset and liability structure. It is essential for the company to closely monitor its liquidity position to ensure it can meet its short-term financial commitments effectively.
Peer comparison
Dec 31, 2023