nVent Electric PLC (NVT)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 131,200 | 185,100 | 297,500 | 49,500 | 122,500 |
| Short-term investments | US$ in thousands | 0 | — | — | — | — |
| Total current liabilities | US$ in thousands | 801,600 | 733,600 | 649,500 | 636,300 | 450,000 |
| Cash ratio | 0.16 | 0.25 | 0.46 | 0.08 | 0.27 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($131,200K
+ $0K)
÷ $801,600K
= 0.16
The cash ratio of nVent Electric PLC has shown fluctuations over the past five years. In December 31, 2020, the cash ratio was 0.27, indicating that the company had $0.27 in cash for every dollar of current liabilities. However, by December 31, 2021, the cash ratio dropped significantly to 0.08, potentially signaling a liquidity strain.
In December 31, 2022, the cash ratio improved to 0.46, suggesting that nVent Electric PLC had increased its cash reserves relative to its current liabilities. The following year, by December 31, 2023, the cash ratio decreased to 0.25, indicating a reduction in the company's liquidity position.
By December 31, 2024, the cash ratio further declined to 0.16, possibly reflecting a decreased ability to cover short-term obligations with available cash. Overall, fluctuations in the cash ratio of nVent Electric PLC over the past five years indicate varying levels of liquidity and the need for careful management of cash flow to meet short-term liabilities effectively.
Peer comparison
Dec 31, 2024