nVent Electric PLC (NVT)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,389,300 | 1,336,100 | 1,229,200 | 911,500 | 764,400 |
| Total current liabilities | US$ in thousands | 801,600 | 733,600 | 649,500 | 636,300 | 450,000 |
| Current ratio | 1.73 | 1.82 | 1.89 | 1.43 | 1.70 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,389,300K ÷ $801,600K
= 1.73
The current ratio of nVent Electric PLC has shown some fluctuations over the past five years. Starting at 1.70 in 2020, the ratio decreased to 1.43 in 2021 before exhibiting an increasing trend in the subsequent years. By the end of 2024, the current ratio had improved to 1.73.
A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally seen as a positive sign of liquidity. However, it is important to note that a very high current ratio may also suggest that the company is not efficiently utilizing its current assets.
Overall, while fluctuations in the current ratio over time can reflect changes in the company's liquidity position, nVent Electric PLC has maintained a current ratio within a reasonable range to meet its short-term obligations.
Peer comparison
Dec 31, 2024