nVent Electric PLC (NVT)

Cash ratio

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
Cash and cash equivalents US$ in thousands 137,100 274,000 211,400 185,100 113,300 138,500 303,100 297,500 194,000 55,800 51,100 49,500 46,000 101,800 104,900 122,500 159,800 235,000 187,900 106,400
Short-term investments US$ in thousands
Total current liabilities US$ in thousands 776,200 654,100 690,300 733,600 659,400 620,600 601,300 649,500 645,000 612,100 588,300 636,300 571,200 535,800 463,800 450,000 409,900 386,200 409,200 462,200
Cash ratio 0.18 0.42 0.31 0.25 0.17 0.22 0.50 0.46 0.30 0.09 0.09 0.08 0.08 0.19 0.23 0.27 0.39 0.61 0.46 0.23

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($137,100K + $—K) ÷ $776,200K
= 0.18

The cash ratio of nVent Electric PLC has fluctuated over the periods provided. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

Looking at the trend, the cash ratio decreased from 0.46 in December 2022 to a low of 0.08 in both March 2022 and December 2021. This suggests a potential liquidity challenge during those periods. However, the ratio improved significantly to 0.50 in March 2023, indicating better liquidity management.

The cash ratio peaked at 0.61 in September 2020, indicating a strong ability to cover short-term obligations with cash. Since then, the ratio has displayed some fluctuations but generally remained above 0.20, reflecting a reasonable liquidity position.

Overall, nVent Electric PLC seems to manage its liquidity effectively, although there have been periods of lower cash ratios which may require further analysis to understand the underlying reasons for such fluctuations. It is important for the company to maintain a healthy cash ratio to ensure it can meet its short-term obligations efficiently.


Peer comparison

Sep 30, 2024

Company name
Symbol
Cash ratio
nVent Electric PLC
NVT
0.18
John Bean Technologies Corporation
JBT
1.00
Pentair PLC
PNR
0.18