Current Ratio
since 2005
Calculation
Illinois Tool Works Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 1.84 | = | 6,374) | ÷ | 3,470) |
| Dec 31, 2020 | 2.52 | = | 6,523) | ÷ | 2,589) |
| Dec 31, 2019 | 2.90 | = | 6,253) | ÷ | 2,154) |
| Dec 31, 2018 | 1.63 | = | 5,778) | ÷ | 3,542) |
| Dec 31, 2017 | 2.38 | = | 7,278) | ÷ | 3,053) |
| Dec 31, 2016 | 2.22 | = | 6,123) | ÷ | 2,760) |
| Dec 31, 2015 | 2.84 | = | 6,720) | ÷ | 2,368) |
| Dec 31, 2014 | 2.29 | = | 8,076) | ÷ | 3,533) |
| Dec 31, 2013 | 1.63 | = | 9,816) | ÷ | 6,034) |
| Dec 31, 2012 | 3.00 | = | 7,960) | ÷ | 2,651) |
| Dec 31, 2011 | 2.30 | = | 6,849) | ÷ | 2,977) |
| Dec 31, 2010 | 1.93 | = | 5,968) | ÷ | 3,094) |
| Dec 31, 2009 | 2.00 | = | 5,675) | ÷ | 2,836) |
| Dec 31, 2008 | 1.21 | = | 5,924) | ÷ | 4,876) |
| Dec 31, 2007 | 2.08 | = | 6,166) | ÷ | 2,960) |
| Dec 31, 2006 | 1.97 | = | 5,206) | ÷ | 2,637) |
| Dec 31, 2005 | 2.06 | = | 4,112) | ÷ | 2,001) |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
Analysis of the liquidity position from 2005 to 2021 reveals a volatile but generally strong current ratio, with the metric consistently remaining above 1.20. This indicates a persistent capacity to meet short-term obligations using current assets, although the degree of liquidity cushion has fluctuated significantly over the seventeen-year period.
- Liquidity Cycle and Volatility
- The current ratio exhibited a cyclical pattern characterized by periods of high liquidity followed by sharp contractions. A notable decline occurred in 2008, where the ratio reached a period low of 1.21, coinciding with a spike in current liabilities to 4,876 million US$. A subsequent recovery led to a peak of 3.00 in 2012, representing the highest liquidity level in the observed timeframe.
- Analysis of Asset and Liability Divergence
- The ratio experienced another significant drop in 2013 to 1.63, driven primarily by a substantial increase in current liabilities to 6,034 million US$, the highest recorded value in the period. A similar contraction was observed in 2018, where the ratio again fell to 1.63, suggesting recurring periods of increased short-term obligations or strategic shifts in working capital management.
- Recent Performance Trends (2019–2021)
- Between 2019 and 2021, a high degree of variance is observed. The current ratio surged to 2.90 in 2019 before moderately declining to 2.52 in 2020 and further decreasing to 1.84 by the end of 2021. This most recent downward trend is attributable to an increase in current liabilities to 3,470 million US$ alongside a slight reduction in current assets to 6,374 million US$.
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Comparison to Competitors
Illinois Tool Works Inc., current ratio, long-term trends, comparison to competitors
| Illinois Tool Works Inc. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 1.84 | 1.33 | 1.46 | 1.04 | 1.28 | 1.30 | 1.42 | 1.19 |
| Dec 31, 2020 | 2.52 | 1.39 | 1.53 | 1.56 | 1.58 | 1.47 | 1.39 | 1.21 |
| Dec 31, 2019 | 2.90 | 1.05 | 1.47 | 1.70 | 1.16 | 1.34 | 1.22 | 1.08 |
| Dec 31, 2018 | 1.63 | 1.08 | 1.37 | 1.47 | — | 1.29 | 1.12 | 1.13 |
| Dec 31, 2017 | 2.38 | 1.16 | 1.35 | 1.64 | — | 1.38 | 1.38 | 1.35 |
| Dec 31, 2016 | 2.22 | 1.25 | 1.22 | 1.27 | — | 1.41 | 1.20 | 1.30 |
| Dec 31, 2015 | 2.84 | 1.35 | 1.31 | 1.43 | — | 1.09 | 1.15 | 1.18 |
| Dec 31, 2014 | 2.29 | 1.20 | 1.39 | 1.51 | — | 1.50 | 1.11 | 1.30 |
| Dec 31, 2013 | 1.63 | 1.26 | 1.40 | 1.78 | — | 1.49 | 1.20 | 1.29 |
| Dec 31, 2012 | 3.00 | 1.27 | 1.43 | 1.44 | — | 1.35 | 1.14 | 1.24 |
| Dec 31, 2011 | 2.30 | 1.21 | 1.33 | 1.60 | — | 1.31 | 1.16 | 1.38 |
| Dec 31, 2010 | 1.93 | 1.15 | 1.44 | 1.70 | — | 1.28 | 1.15 | 1.33 |
| Dec 31, 2009 | 2.00 | 1.07 | 1.39 | 1.68 | — | 1.25 | 1.17 | 1.29 |
| Dec 31, 2008 | 1.21 | 0.84 | 1.21 | 1.28 | — | 1.08 | 1.01 | 1.24 |
| Dec 31, 2007 | 2.08 | 0.86 | 1.15 | 1.30 | — | 1.15 | 1.11 | 1.26 |
| Dec 31, 2006 | 1.97 | 0.77 | 1.20 | 1.29 | — | 1.21 | 1.06 | 1.24 |
| Dec 31, 2005 | 2.06 | 0.78 | 1.19 | 1.21 | — | 1.15 | 1.12 | 1.12 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
Illinois Tool Works Inc., current ratio, long-term trends, comparison to sector (capital goods)
| Illinois Tool Works Inc. | Capital Goods | |
|---|---|---|
| Dec 31, 2021 | 1.84 | 1.31 |
| Dec 31, 2020 | 2.52 | 1.43 |
| Dec 31, 2019 | 2.90 | 1.17 |
| Dec 31, 2018 | 1.63 | 1.17 |
| Dec 31, 2017 | 2.38 | 1.29 |
| Dec 31, 2016 | 2.22 | 1.27 |
| Dec 31, 2015 | 2.84 | 1.26 |
| Dec 31, 2014 | 2.29 | 1.29 |
| Dec 31, 2013 | 1.63 | 1.34 |
| Dec 31, 2012 | 3.00 | 1.31 |
| Dec 31, 2011 | 2.30 | 1.29 |
| Dec 31, 2010 | 1.93 | 1.28 |
| Dec 31, 2009 | 2.00 | 1.23 |
| Dec 31, 2008 | 1.21 | 1.07 |
| Dec 31, 2007 | 2.08 | 1.08 |
| Dec 31, 2006 | 1.97 | 1.05 |
| Dec 31, 2005 | 2.06 | 1.03 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
Illinois Tool Works Inc., current ratio, long-term trends, comparison to industry (industrials)
| Illinois Tool Works Inc. | Industrials | |
|---|---|---|
| Dec 31, 2021 | 1.84 | 1.29 |
| Dec 31, 2020 | 2.52 | 1.41 |
| Dec 31, 2019 | 2.90 | 1.16 |
| Dec 31, 2018 | 1.63 | 1.13 |
| Dec 31, 2017 | 2.38 | 1.24 |
| Dec 31, 2016 | 2.22 | 1.22 |
| Dec 31, 2015 | 2.84 | 1.24 |
| Dec 31, 2014 | 2.29 | 1.26 |
| Dec 31, 2013 | 1.63 | 1.33 |
| Dec 31, 2012 | 3.00 | 1.30 |
| Dec 31, 2011 | 2.30 | 1.30 |
| Dec 31, 2010 | 1.93 | 1.28 |
| Dec 31, 2009 | 2.00 | 1.23 |
| Dec 31, 2008 | 1.21 | 1.06 |
| Dec 31, 2007 | 2.08 | 1.07 |
| Dec 31, 2006 | 1.97 | 1.05 |
| Dec 31, 2005 | 2.06 | 1.05 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).