Illinois Tool Works Inc (ITW)

Current 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
Total current assets	US$ in thousands	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	6,253,000	6,245,000	6,289,000	6,075,000
Total current liabilities	US$ in thousands	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	2,154,000	2,223,000	2,188,000	3,961,000
Current ratio		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	2.90	2.81	2.87	1.53

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $6,235,000K ÷ $4,675,000K
= 1.33

The current ratio of Illinois Tool Works, Inc. has fluctuated over the past eight quarters, ranging from a low of 1.20 in Q1 2023 to a high of 1.73 in Q1 2022. Generally, a current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting it is potentially able to meet its short-term obligations.

In the most recent quarter, Q4 2023, the current ratio stands at 1.33, which is lower than the industry average. This may indicate a potential liquidity concern, as the company may struggle to cover its short-term obligations with its current assets.

The trend in the current ratio over the past year shows a slight decrease in liquidity from Q1 2022 to Q1 2023, with a peak in Q1 2022. Further monitoring of the company's liquidity position and management of its current assets and liabilities may be warranted to ensure financial stability and the ability to meet short-term obligations.