nVent Electric PLC (NVT)
Cash ratio
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 131,200 | 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 |
| Short-term investments | US$ in thousands | 0 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 801,600 | 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 |
| Cash ratio | 0.16 | 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 |
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 fluctuated over the years, showing a general downward trend from 2020 to 2022, with a slight increase in 2023 and a subsequent decrease in 2024. The ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
The ratio stood at 0.46 in December 2020, indicating that the company had $0.46 in cash and cash equivalents for every dollar of current liabilities. This ratio decreased to 0.08 by September 2021, suggesting a reduced ability to meet short-term obligations with available cash.
Although the ratio improved to 0.50 in March 2023, signaling a temporary strengthening of the company's liquidity position, it fell to 0.16 by December 2024. This decline may raise concerns regarding the company's liquidity management and its ability to meet short-term financial obligations solely through cash resources.
Overall, nVent Electric PLC's cash ratio has shown fluctuations, indicating varying levels of liquidity over the years. It is important for stakeholders to monitor this ratio to assess the company's ability to meet short-term financial commitments efficiently.
Peer comparison
Dec 31, 2024