nVent Electric PLC (NVT)
Cash ratio
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 49,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 437,300 |
| Cash ratio | 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 | 0.11 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($274,000K
+ $—K)
÷ $654,100K
= 0.42
The cash ratio of nVent Electric PLC has been fluctuating over the past six quarters, ranging from a low of 0.08 to a high of 0.50. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
For the most recent quarter ending Jun 30, 2024, the cash ratio of 0.42 indicates that the company has sufficient cash on hand to cover 42% of its current liabilities, suggesting a relatively healthy liquidity position.
The trend in the cash ratio over the past few quarters shows that nVent Electric PLC has been able to improve its liquidity position compared to previous periods, especially with a significant increase from 0.09 in Mar 31, 2022, to 0.42 in Jun 30, 2024.
While the cash ratio can vary based on the nature of the business and industry norms, it is important for investors and creditors to monitor this ratio to assess the company's ability to meet its short-term obligations without relying on external financing. Overall, the upward trend in nVent Electric PLC's cash ratio indicates an improvement in its liquidity position over the analyzed timeframe.
Peer comparison
Jun 30, 2024