Illinois Tool Works Inc (ITW)
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 | 1,065,000 | 990,000 | 922,000 | 1,143,000 | 708,000 | 774,000 | 879,000 | 1,296,000 | 1,527,000 | 1,987,000 | 2,058,000 | 2,484,000 | 2,564,000 | 2,169,000 | 1,812,000 | 1,430,000 | 1,981,000 | 1,825,000 | 1,677,000 | 1,755,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 3,123,000 | 3,163,000 | 3,216,000 | 3,201,000 | 3,171,000 | 3,031,000 | 3,109,000 | 3,126,000 | 2,840,000 | 2,729,000 | 2,786,000 | 2,662,000 | 2,506,000 | 2,494,000 | 2,156,000 | 2,424,000 | 2,461,000 | 2,499,000 | 2,629,000 | 2,715,000 |
| 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 |
| Quick ratio | 0.90 | 1.04 | 1.02 | 0.78 | 0.87 | 0.87 | 0.93 | 1.15 | 1.26 | 1.57 | 1.64 | 1.92 | 1.96 | 1.84 | 1.94 | 1.90 | 2.06 | 1.95 | 1.97 | 1.13 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,065,000K
+ $—K
+ $3,123,000K)
÷ $4,675,000K
= 0.90
The quick ratio of Illinois Tool Works, Inc. has displayed some fluctuations over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets.
In Q4 2023, the quick ratio was 0.97, indicating that the company had $0.97 of highly liquid assets available to cover each dollar of its current liabilities. This signifies a slight decrease compared to the previous two quarters where the quick ratio was above 1, suggesting a potential constraint in the company's ability to meet its short-term obligations in this quarter.
Looking further back, the quick ratio varied throughout the past year, with a peak of 1.24 in Q1 2022 and a low of 0.84 in Q1 2023. A quick ratio above 1 is generally considered healthy, as it indicates the company can comfortably meet its short-term obligations. On the other hand, a quick ratio below 1 may imply liquidity challenges.
Overall, Illinois Tool Works' quick ratio has shown mixed performance, with some quarters indicating stronger liquidity positions than others. It would be essential for stakeholders to closely monitor this ratio in the future to assess the company's ability to manage its short-term obligations effectively.
Peer comparison
Dec 31, 2023