ITT Inc (ITT)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 1.79 1.71 1.56 1.60 1.55 1.41 1.36 1.53 1.86 1.83 1.81 2.29 2.20 2.10 1.93 1.76 2.04 1.92 1.91 1.95
Quick ratio 1.12 1.06 0.98 1.01 1.00 0.90 0.87 1.07 1.30 1.27 1.26 1.60 1.57 1.47 1.35 1.28 1.40 1.27 1.27 1.32
Cash ratio 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 0.72 0.63 0.60 0.64

ITT Inc's liquidity ratios show a generally positive trend over the past eight quarters. The current ratio has consistently been above 1.5, indicating that the company has more than enough current assets to cover its current liabilities. The current ratio improved from 1.55 in Q4 2022 to 1.79 in Q4 2023, reflecting better short-term liquidity.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown improvement, consistently above 1.0. This indicates that ITT Inc has an adequate level of liquid assets to cover its short-term obligations without relying on inventory. The quick ratio increased from 1.10 in Q4 2022 to 1.24 in Q4 2023.

Furthermore, the cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents alone, has also been on an upward trend. The cash ratio increased from 0.57 in Q4 2022 to 0.58 in Q4 2023, showing that ITT Inc has sufficient cash reserves to meet its short-term obligations.

Overall, based on these liquidity ratios, ITT Inc appears to be in a strong financial position with improving liquidity over the past year, indicating the company's ability to meet its short-term financial obligations comfortably.

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 98.29 104.30 108.13 109.61 100.29 103.72 99.94 92.87 84.53 87.15 88.76 89.53 86.32 88.69 88.14 85.59 85.57 88.87 93.25 87.42

The cash conversion cycle of ITT Inc has shown fluctuating trends over the past eight quarters. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

In Q4 2023, the cash conversion cycle improved to 98.29 days, indicating that the company was able to more efficiently manage its inventory and collect payments from customers. However, the cycle increased in Q3 2023 to 104.30 days, suggesting potential challenges in managing working capital effectively.

Looking back further, Q2 and Q1 of 2023 also showed relatively high cash conversion cycles of 108.13 days and 109.61 days, respectively. This indicates that the company may have faced difficulties in converting its investments into cash during these periods.

Comparing this to the same quarters in the previous year, Q4 2022, Q3 2022, and Q2 2022 all had lower cash conversion cycles, indicating improved efficiency in working capital management during those periods. However, Q1 2022 had a comparable cycle of 92.87 days similar to Q4 2023 suggesting that efficiency in working capital management still poses a challenge for the company.

Overall, ITT Inc should continue monitoring and improving its cash conversion cycle to ensure efficient management of working capital and optimize cash flows from operations.