ITW Current Ratio Analysis

A current ratio of 1.11x means ITW has $1.11 in current assets for every $1.00 in current liabilities, indicating it can cover near-term obligations but with a slim margin.

ITW sits below the sector median of 1.25x and ranks at the 39th percentile among peers, so its liquidity is weaker than most comparable companies. The trend direction over the last 8 quarters is N/A, and the year-over-year change is also N/A, but the quarter-over-quarter change shows a 6.7% decline from the prior figure of 1.19x. That drop, combined with a level already under the peer median, points to shrinking near-term liquidity cushion and a modest rise in payment strain risk. For investors, this offers no upside opportunity; it is a caution flag that could pressure operations if cash conversion slows. This metric directly supports the overall CAUTIOUS verdict because the lower-than-median ratio and recent deterioration both align with a defensive stance.

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