nVent Electric PLC (NVT)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,336,100 | 1,229,200 | 911,500 | 764,400 | 798,700 |
| Total current liabilities | US$ in thousands | 733,600 | 649,500 | 636,300 | 450,000 | 462,200 |
| Current ratio | 1.82 | 1.89 | 1.43 | 1.70 | 1.73 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,336,100K ÷ $733,600K
= 1.82
The current ratio of nVent Electric plc has shown a fluctuating trend over the past five years, ranging from 1.43 in 2021 to 1.89 in 2022. The current ratio as of Dec 31, 2023, stands at 1.82, indicating that the company has $1.82 in current assets for every $1 in current liabilities.
While the current ratio has decreased slightly from the previous year, it remains above 1, suggesting that nVent Electric plc has sufficient current assets to cover its current liabilities. However, the downward trend in recent years may indicate a need for the company to closely monitor its liquidity position and working capital management to ensure it maintains a healthy financial position in the future.
Peer comparison
Dec 31, 2023