Illinois Tool Works Inc (ITW)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,856,000 | 6,235,000 | 6,270,000 | 6,374,000 | 6,523,000 |
| Total current liabilities | US$ in thousands | 4,308,000 | 4,675,000 | 4,460,000 | 3,470,000 | 2,589,000 |
| Current ratio | 1.36 | 1.33 | 1.41 | 1.84 | 2.52 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,856,000K ÷ $4,308,000K
= 1.36
The current ratio of Illinois Tool Works Inc has shown a decreasing trend over the past five years. Starting at a healthy level of 2.52 on December 31, 2020, the ratio decreased to 1.84 by December 31, 2021, indicating a slight decrease in liquidity. However, the ratio witnessed a more significant drop to 1.41 by December 31, 2022, followed by further declines to 1.33 on December 31, 2023, and 1.36 by December 31, 2024.
This downward trajectory suggests that Illinois Tool Works Inc may be facing challenges in maintaining its short-term liquidity position. A current ratio below 2 may indicate potential difficulties in meeting short-term obligations with current assets alone. It is essential for the company to closely monitor its liquidity position and take appropriate measures to improve its current ratio to ensure financial stability in the future.
Peer comparison
Dec 31, 2024