Illinois Tool Works Inc (ITW)
Current ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,856,000 | 6,304,000 | 6,256,000 | 6,371,000 | 6,235,000 | 6,288,000 | 6,404,000 | 6,688,000 | 6,270,000 | 6,196,000 | 6,371,000 | 6,682,000 | 6,374,000 | 6,577,000 | 6,509,000 | 6,704,000 | 6,523,000 | 6,031,000 | 5,609,000 | 5,506,000 |
| Total current liabilities | US$ in thousands | 4,308,000 | 4,627,000 | 4,804,000 | 4,844,000 | 4,675,000 | 3,982,000 | 4,040,000 | 5,596,000 | 4,460,000 | 4,392,000 | 4,294,000 | 3,858,000 | 3,470,000 | 2,996,000 | 2,960,000 | 2,680,000 | 2,589,000 | 2,540,000 | 2,042,000 | 2,032,000 |
| Current ratio | 1.36 | 1.36 | 1.30 | 1.32 | 1.33 | 1.58 | 1.59 | 1.20 | 1.41 | 1.41 | 1.48 | 1.73 | 1.84 | 2.20 | 2.20 | 2.50 | 2.52 | 2.37 | 2.75 | 2.71 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,856,000K ÷ $4,308,000K
= 1.36
Illinois Tool Works Inc's current ratio has shown a declining trend over the past few years. The ratio stood at a healthy 2.71 in March 2020 but gradually decreased to 1.36 by December 2024. A current ratio above 1 indicates that the company has more current assets than current liabilities to meet its short-term obligations. However, a declining current ratio could suggest potential liquidity challenges as it means the company may be less able to cover its short-term liabilities with its current assets. It is recommended for stakeholders to monitor this trend closely to ensure the company maintains a strong liquidity position.
Peer comparison
Dec 31, 2024