ITT Inc (ITT)
Quick ratio
| 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 | US$ in thousands | 489,200 | 430,800 | 462,100 | 462,000 | 561,200 | 514,500 | 525,700 | 710,400 | 647,500 | 585,800 | 578,800 | 780,200 | 859,800 | 782,300 | 819,100 | 839,900 | 612,100 | 555,700 | 531,900 | 554,000 |
| Short-term investments | US$ in thousands | 0 | — | — | — | 0 | — | — | — | 0 | — | — | — | 0 | — | — | — | 0 | — | — | — |
| Receivables | US$ in thousands | 675,200 | 674,000 | 689,300 | 669,900 | 628,800 | 628,900 | 605,700 | 615,800 | 555,100 | 560,200 | 553,400 | 546,300 | 507,500 | 490,200 | 463,200 | 573,900 | 578,400 | 574,300 | 600,000 | 582,700 |
| Total current liabilities | US$ in thousands | 1,037,800 | 1,044,000 | 1,174,100 | 1,121,400 | 1,185,500 | 1,269,100 | 1,303,400 | 1,242,300 | 928,300 | 899,200 | 900,000 | 826,500 | 871,000 | 866,000 | 947,600 | 1,107,000 | 849,700 | 888,800 | 892,400 | 860,500 |
| 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 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($489,200K
+ $0K
+ $675,200K)
÷ $1,037,800K
= 1.12
ITT Inc's quick ratio has shown variability over the past eight quarters, ranging from 0.95 to 1.24. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A ratio above 1 indicates that the company has sufficient quick assets to cover its current liabilities.
Analyzing the trend, we observe that since Q2 2022, the quick ratio has generally been above 1, reflecting a healthy liquidity position. However, in Q3 2022, there was a slight dip to 0.99, which may have raised concerns about the company's ability to meet immediate obligations. The subsequent quarters showed improvement, with Q4 2023 reaching a high of 1.24.
Overall, the upward trend in the quick ratio indicates that ITT Inc has been effectively managing its liquidity position, ensuring that it can meet its short-term obligations comfortably. The company's ability to maintain a quick ratio above 1 suggests a solid financial position and efficient cash management.
Peer comparison
Dec 31, 2023