Quick Ratio

The quick ratio measures a company's ability to cover short-term liabilities with its most liquid assets (cash, receivables) by excluding inventory.

ITW’s current 0.79x means it has $0.79 in liquid assets for every $1 of current liabilities — below the 1.0x threshold often considered healthy. Among sector peers, this value sits just above the median of 0.73x, placing ITW in the 53rd percentile. The year-over-year change is not available, but the quarter-over-quarter change of +393.8% reflects a sharp improvement from the previous value of 0.16x. Despite this large increase, the absolute level remains below 1.0x, indicating that liquidity coverage is still constrained. The combination of a below‑1.0 level with a strong upward trend suggests reduced near‑term risk but not yet full safety. This metric supports the cautious verdict because, while the trend is improving, the current ratio still signals potential difficulty in meeting all short-term obligations without relying on inventory sales.

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