ITT Inc (ITT)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 439,300 489,200 561,200 647,500 859,800
Short-term investments US$ in thousands 0 0 0 0 0
Receivables US$ in thousands 703,000 675,200 628,800 555,100 507,500
Total current liabilities US$ in thousands 1,333,200 1,037,800 1,185,500 928,300 871,000
Quick ratio 0.86 1.12 1.00 1.30 1.57

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($439,300K + $0K + $703,000K) ÷ $1,333,200K
= 0.86

The quick ratio of ITT Inc has shown a downward trend over the past five years. Starting at a healthy level of 1.57 on December 31, 2020, the ratio decreased to 1.30 by December 31, 2021, and further dropped to 1.00 by December 31, 2022. Although there was a slight improvement to 1.12 on December 31, 2023, the ratio declined again to 0.86 by December 31, 2024.

This declining trend in the quick ratio indicates a potential weakening of the company's short-term liquidity position. A ratio below 1 suggests that the company may have difficulties meeting its short-term obligations using its most liquid assets. It is important for ITT Inc to closely monitor its quick ratio in order to ensure it maintains an adequate level of liquidity to cover its short-term liabilities.