Illinois Tool Works Inc. (ITW)


Analysis of Liquidity Ratios
Quarterly Data

Beginner level

Liquidity ratios measure the company’s ability to meet its short-term obligations.


Liquidity Ratios (Summary)

Illinois Tool Works Inc., liquidity ratios (quarterly data)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Current ratio 2.90 2.81 2.87 1.53 1.63 1.62 1.73 2.20 2.38 2.41 2.32 2.24 2.22 1.77 2.18 2.30 2.84 2.56 2.56 1.78
Quick ratio 2.06 1.95 1.97 1.13 1.16 1.19 1.27 1.65 1.87 1.90 1.81 1.75 1.75 1.38 1.69 1.78 2.24 1.96 1.92 1.35
Cash ratio 0.92 0.82 0.77 0.44 0.42 0.43 0.46 0.66 1.01 0.97 0.88 0.87 0.90 0.66 0.83 0.90 1.30 1.10 1.04 0.71

Based on: 10-K (filing date: 2020-02-14), 10-Q (filing date: 2019-10-28), 10-Q (filing date: 2019-08-02), 10-Q (filing date: 2019-05-03), 10-K (filing date: 2019-02-15), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-03), 10-Q (filing date: 2018-05-04), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-08-04), 10-Q (filing date: 2017-05-05), 10-K (filing date: 2017-02-10), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-12), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-08-07), 10-Q (filing date: 2015-05-07).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Illinois Tool Works Inc.’s current ratio deteriorated from Q2 2019 to Q3 2019 but then improved from Q3 2019 to Q4 2019 exceeding Q2 2019 level.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Illinois Tool Works Inc.’s quick ratio deteriorated from Q2 2019 to Q3 2019 but then improved from Q3 2019 to Q4 2019 exceeding Q2 2019 level.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Illinois Tool Works Inc.’s cash ratio improved from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.

Current Ratio

Illinois Tool Works Inc., current ratio calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Current assets 6,253  6,245  6,289  6,075  5,778  5,940  6,119  6,423  7,278  6,912  6,570  6,430  6,123  6,185  6,167  6,241  6,720  6,969  7,033  6,667 
Current liabilities 2,154  2,223  2,188  3,961  3,542  3,663  3,547  2,925  3,053  2,867  2,826  2,875  2,760  3,486  2,824  2,716  2,368  2,724  2,746  3,744 
Liquidity Ratio
Current ratio1 2.90 2.81 2.87 1.53 1.63 1.62 1.73 2.20 2.38 2.41 2.32 2.24 2.22 1.77 2.18 2.30 2.84 2.56 2.56 1.78
Benchmarks
Current Ratio, Competitors2
Caterpillar Inc. 1.44 1.43 1.43 1.37 1.48 1.37 1.36 1.35 1.44 1.31 1.29 1.22 1.27 1.24 1.29 1.31 1.37 1.49 1.45

Based on: 10-K (filing date: 2020-02-14), 10-Q (filing date: 2019-10-28), 10-Q (filing date: 2019-08-02), 10-Q (filing date: 2019-05-03), 10-K (filing date: 2019-02-15), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-03), 10-Q (filing date: 2018-05-04), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-08-04), 10-Q (filing date: 2017-05-05), 10-K (filing date: 2017-02-10), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-12), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-08-07), 10-Q (filing date: 2015-05-07).

1 Q4 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 6,253 ÷ 2,154 = 2.90

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Illinois Tool Works Inc.’s current ratio deteriorated from Q2 2019 to Q3 2019 but then improved from Q3 2019 to Q4 2019 exceeding Q2 2019 level.

Quick Ratio

Illinois Tool Works Inc., quick ratio calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Cash and equivalents 1,981  1,825  1,677  1,755  1,504  1,589  1,628  1,940  3,094  2,785  2,496  2,493  2,472  2,299  2,355  2,448  3,090  3,001  2,858  2,672 
Trade receivables 2,461  2,499  2,629  2,715  2,622  2,777  2,878  2,874  2,628  2,672  2,629  2,534  2,357  2,496  2,413  2,394  2,203  2,339  2,412  2,367 
Total quick assets 4,442  4,324  4,306  4,470  4,126  4,366  4,506  4,814  5,722  5,457  5,125  5,027  4,829  4,795  4,768  4,842  5,293  5,340  5,270  5,039 
 
Current liabilities 2,154  2,223  2,188  3,961  3,542  3,663  3,547  2,925  3,053  2,867  2,826  2,875  2,760  3,486  2,824  2,716  2,368  2,724  2,746  3,744 
Liquidity Ratio
Quick ratio1 2.06 1.95 1.97 1.13 1.16 1.19 1.27 1.65 1.87 1.90 1.81 1.75 1.75 1.38 1.69 1.78 2.24 1.96 1.92 1.35
Benchmarks
Quick Ratio, Competitors2
Caterpillar Inc. 0.93 0.94 0.91 0.90 0.95 0.90 0.90 0.91 0.98 0.92 0.89 0.83 0.82 0.82 0.84 0.84 0.84 0.95 0.91

Based on: 10-K (filing date: 2020-02-14), 10-Q (filing date: 2019-10-28), 10-Q (filing date: 2019-08-02), 10-Q (filing date: 2019-05-03), 10-K (filing date: 2019-02-15), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-03), 10-Q (filing date: 2018-05-04), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-08-04), 10-Q (filing date: 2017-05-05), 10-K (filing date: 2017-02-10), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-12), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-08-07), 10-Q (filing date: 2015-05-07).

1 Q4 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 4,442 ÷ 2,154 = 2.06

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Illinois Tool Works Inc.’s quick ratio deteriorated from Q2 2019 to Q3 2019 but then improved from Q3 2019 to Q4 2019 exceeding Q2 2019 level.

Cash Ratio

Illinois Tool Works Inc., cash ratio calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in millions)
Cash and equivalents 1,981  1,825  1,677  1,755  1,504  1,589  1,628  1,940  3,094  2,785  2,496  2,493  2,472  2,299  2,355  2,448  3,090  3,001  2,858  2,672 
Total cash assets 1,981  1,825  1,677  1,755  1,504  1,589  1,628  1,940  3,094  2,785  2,496  2,493  2,472  2,299  2,355  2,448  3,090  3,001  2,858  2,672 
 
Current liabilities 2,154  2,223  2,188  3,961  3,542  3,663  3,547  2,925  3,053  2,867  2,826  2,875  2,760  3,486  2,824  2,716  2,368  2,724  2,746  3,744 
Liquidity Ratio
Cash ratio1 0.92 0.82 0.77 0.44 0.42 0.43 0.46 0.66 1.01 0.97 0.88 0.87 0.90 0.66 0.83 0.90 1.30 1.10 1.04 0.71
Benchmarks
Cash Ratio, Competitors2
Caterpillar Inc. 0.29 0.27 0.26 0.28 0.31 0.31 0.29 0.31 0.37 0.36 0.34 0.27 0.24 0.25 0.22 0.25 0.23 0.31 0.28

Based on: 10-K (filing date: 2020-02-14), 10-Q (filing date: 2019-10-28), 10-Q (filing date: 2019-08-02), 10-Q (filing date: 2019-05-03), 10-K (filing date: 2019-02-15), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-03), 10-Q (filing date: 2018-05-04), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-10-27), 10-Q (filing date: 2017-08-04), 10-Q (filing date: 2017-05-05), 10-K (filing date: 2017-02-10), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-12), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-08-07), 10-Q (filing date: 2015-05-07).

1 Q4 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,981 ÷ 2,154 = 0.92

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Illinois Tool Works Inc.’s cash ratio improved from Q2 2019 to Q3 2019 and from Q3 2019 to Q4 2019.