Illinois Tool Works Inc (ITW)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 948,000 | 1,065,000 | 708,000 | 1,527,000 | 2,564,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,308,000 | 4,675,000 | 4,460,000 | 3,470,000 | 2,589,000 |
| Quick ratio | 0.22 | 0.23 | 0.16 | 0.44 | 0.99 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($948,000K
+ $—K
+ $—K)
÷ $4,308,000K
= 0.22
The quick ratio of Illinois Tool Works Inc has shown a declining trend over the years, starting at 0.99 in December 2020 and dropping to 0.44 by December 2021. The ratio further decreased to 0.16 by December 2022, indicating a potential liquidity concern. However, there was a slight improvement in liquidity as the quick ratio increased to 0.23 by December 2023 and remained relatively stable at 0.22 by December 2024. Overall, the company's ability to meet its short-term obligations with its most liquid assets has fluctuated, and it may be prudent for stakeholders to monitor this trend closely to ensure adequate liquidity levels.
Peer comparison
Dec 31, 2024