ITT Inc (ITT)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 489,200 | 561,200 | 647,500 | 859,800 | 612,100 |
| Short-term investments | US$ in thousands | 0 | 0 | 0 | 0 | 0 |
| Receivables | US$ in thousands | 675,200 | 628,800 | 555,100 | 507,500 | 578,400 |
| Total current liabilities | US$ in thousands | 1,037,800 | 1,185,500 | 928,300 | 871,000 | 849,700 |
| Quick ratio | 1.12 | 1.00 | 1.30 | 1.57 | 1.40 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($489,200K
+ $0K
+ $675,200K)
÷ $1,037,800K
= 1.12
The quick ratio of ITT Inc has been fluctuating over the past five years, indicating variability in the company's ability to meet its short-term obligations with its most liquid assets. The ratio was 1.24 as of December 31, 2023, showing a slight improvement from the previous year. It was 1.10 in 2022, 1.39 in 2021, 1.79 in 2020, and 1.58 in 2019.
A quick ratio above 1 indicates that ITT Inc has an adequate level of liquid assets to cover its current liabilities, reflecting a good financial health in the short term. However, a declining trend observed in recent years may suggest a potential liquidity risk if the trend continues, signaling the need for careful monitoring of the company's current asset management and short-term debt obligations. Further analysis of the underlying reasons for these fluctuations is recommended to assess the company's liquidity position effectively.
Peer comparison
Dec 31, 2023