nVent Electric PLC (NVT)
Activity ratios
Short-term
Turnover ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 7.67 | 6.42 | 6.36 | 7.52 | 5.48 | 5.18 | 6.62 | 6.96 | 6.37 | 6.15 | 6.32 | 6.42 | 6.44 | 7.45 | 8.15 | 8.22 | 12.41 | 9.92 | 8.73 | 7.54 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | 11.54 | 10.76 | 10.66 | 11.29 | 10.47 | 10.20 | 10.07 | 9.58 | 9.21 | 8.25 | 8.35 | 7.92 | 8.53 | 9.36 | 10.96 | 11.31 | 21.31 | 18.20 | 14.41 | 9.86 |
| Working capital turnover | 5.13 | 4.40 | 4.85 | 5.30 | 4.83 | 4.43 | 4.49 | 4.96 | 4.91 | 5.89 | 6.80 | 8.77 | 7.19 | 5.88 | 5.97 | 6.27 | 4.97 | 4.15 | 4.52 | 6.45 |
nVent Electric PLC has shown a consistent trend of inventory turnover over the past 5 years, with the ratio ranging from 5.18 to 8.22. This indicates that the company is effectively managing its inventory levels, with higher turnover ratios generally being favorable as they suggest efficient utilization of inventory.
Unfortunately, data for receivables turnover is not available in the provided table, making it difficult to assess how well the company is collecting on its receivables.
The payables turnover ratio has also been relatively stable over the years, ranging from 7.92 to 21.31. A higher payables turnover ratio indicates that the company is taking less time to pay its suppliers, which could potentially indicate good relationships with suppliers or efficient payment processes.
The working capital turnover ratio has shown some fluctuation over the years, ranging from 4.15 to 8.77. A higher working capital turnover ratio generally indicates that the company is generating more sales revenue per unit of working capital, highlighting efficient use of working capital to generate sales.
Overall, nVent Electric PLC appears to be managing its activity ratios reasonably well, with efficient inventory turnover and stable payables turnover ratios. However, further analysis, especially on receivables turnover, would provide a more comprehensive view of the company's efficiency in managing its operations.
Average number of days
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 47.58 | 56.85 | 57.36 | 48.56 | 66.59 | 70.49 | 55.12 | 52.41 | 57.31 | 59.35 | 57.73 | 56.85 | 56.66 | 49.02 | 44.78 | 44.38 | 29.42 | 36.79 | 41.79 | 48.42 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 31.62 | 33.93 | 34.23 | 32.33 | 34.86 | 35.79 | 36.26 | 38.11 | 39.62 | 44.25 | 43.71 | 46.09 | 42.77 | 39.00 | 33.30 | 32.28 | 17.13 | 20.05 | 25.33 | 37.02 |
Days of Inventory on Hand (DOH) for nVent Electric PLC have shown some fluctuations over the periods analyzed. The company maintained an average inventory level of around 50-60 days during most quarters, indicating that the company typically carries inventory for around 1.5 to 2 months before it is sold. However, there were some fluctuations with peaks at around 70 days in certain quarters, indicating a possible buildup of inventory.
Days of Sales Outstanding (DSO) data is missing or not available for all periods. This could be due to the company not disclosing this information or using a different method for managing accounts receivable.
Number of Days of Payables show a consistent pattern of around 30-40 days on average, with some exceptions where the days extended beyond 40 days. This indicates that nVent Electric PLC typically takes around 1 to 1.5 months to pay its suppliers. The trend has been relatively stable over the periods analyzed.
Overall, for nVent Electric PLC, the analysis of activity ratios suggests that the company manages its inventory efficiently, maintains relatively stable payment terms with suppliers, but further information is required to assess its accounts receivable management practices.
Long-term
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 9.82 | 8.78 | 8.64 | 9.99 | 8.31 | 7.92 | 9.98 | 9.95 | 10.26 | 9.63 | 8.91 | 8.29 | 7.96 | 7.39 | 7.08 | 6.81 | 7.25 | 7.46 | 7.73 | 7.63 |
| Total asset turnover | 0.48 | 0.55 | 0.54 | 0.52 | 0.52 | 0.51 | 0.59 | 0.59 | 0.57 | 0.56 | 0.54 | 0.52 | 0.49 | 0.46 | 0.45 | 0.45 | 0.46 | 0.44 | 0.46 | 0.47 |
nVent Electric PLC's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insight into the company's efficiency in utilizing its assets to generate sales.
The fixed asset turnover ratio shows how effectively the company generates sales using its fixed assets. nVent Electric PLC's fixed asset turnover ratio has been relatively consistent over the periods, ranging from approximately 7.08 to 10.26. The increasing trend from 2021 to 2024 indicates that the company has been more efficient in generating sales with its fixed assets over time. A higher fixed asset turnover ratio generally suggests better asset utilization and operational efficiency.
The total asset turnover ratio reflects the company's ability to generate sales using all its assets, both fixed and current. nVent Electric PLC's total asset turnover ratio has also shown stability over the periods, ranging from about 0.45 to 0.59. The ratio fluctuates within a relatively narrow range, indicating consistent asset turnover efficiency. A higher total asset turnover ratio signifies that the company is generating more sales per dollar of assets, which is favorable.
Overall, nVent Electric PLC's long-term activity ratios suggest that the company has been effective in utilizing its assets to generate sales, as evidenced by the stability and in some cases improvement of both the fixed asset turnover and total asset turnover ratios over the periods analyzed.