ITWCAUTIOUS

ITW Quick Ratio Analysis

0.74x

Updated 273h ago·SEC filings & market data

Key Takeaway

The quick ratio measures a company’s ability to cover short-term bills using only its most liquid assets—cash, marketable securities, and receivables—excluding inventory.

Sector Performance

51th percentile

ITW

0.74x

Sector Median

0.72x

Sector Avg

2.70x

Prior Period

0.79x(Aug 2026)

↓ Declining

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Deep Analysis

The quick ratio measures a company’s ability to cover short-term bills using only its most liquid assets—cash, marketable securities, and receivables—excluding inventory.

ITW’s 0.74x means it has $0.74 of these liquid assets for every $1 of current liabilities, a thin cushion. That sits just above the sector median of 0.72x, placing ITW in the 51st percentile among peers, so its liquidity is essentially typical. The year-over-year change is N/A, but the quarter-over-quarter drop of -6.3% shows a recent weakening from last quarter’s 0.79x. Level plus trend suggests ITW is not an outlier for risk, yet the downward move signals eroding short-term liquidity that could tighten under stress. This metric supports the overall CAUTIOUS verdict, as a declining quick ratio near the sector norm offers limited margin for error, even if it does not contradict peer comparisons.

Frequently Asked Questions

What does the Quick Ratio tell investors about ITW?

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.

How is the Quick Ratio calculated?

Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.

Who are ITW's closest peers by Quick Ratio?

The closest peers by Quick Ratio include: OMC (0.67x), KO (0.66x), SIEGY (0.64x), TAP (0.60x), LW (0.60x).

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Learn More About Quick Ratio

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Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

(Cash + Receivables) / Current Liabilities

Why It Matters

A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.