nVent Electric PLC (NVT)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,418,700 | 1,422,700 | 1,373,900 | 1,336,100 | 1,299,900 | 1,296,100 | 1,251,800 | 1,229,200 | 1,212,800 | 1,068,300 | 964,900 | 911,500 | 889,700 | 902,500 | 799,000 | 764,400 | 816,000 | 883,100 | 885,800 | 798,700 |
| 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 |
| Current ratio | 1.83 | 2.18 | 1.99 | 1.82 | 1.97 | 2.09 | 2.08 | 1.89 | 1.88 | 1.75 | 1.64 | 1.43 | 1.56 | 1.68 | 1.72 | 1.70 | 1.99 | 2.29 | 2.16 | 1.73 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,418,700K ÷ $776,200K
= 1.83
The current ratio for nVent Electric PLC has shown fluctuations over the last few years, indicating changes in the company's liquidity position. The ratio has generally been above 1, indicating that the company has had more current assets than current liabilities to meet its short-term obligations.
Looking at the trend, the current ratio peaked at 2.29 in Mar 2020 and has since decreased, with some fluctuations along the way. While a current ratio above 2 could indicate a very strong liquidity position, it's important to note that excessively high current ratios may also suggest that the company is not efficiently utilizing its current assets.
Overall, the current ratio for nVent Electric PLC has been relatively healthy, consistently above 1.5, which indicates that the company has had a comfortable buffer to cover its short-term obligations. However, stakeholders should continue to monitor the current ratio to ensure that the company maintains a healthy balance between current assets and current liabilities.
Peer comparison
Sep 30, 2024