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