nVent Electric PLC (NVT)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 185,100 | 297,500 | 49,500 | 122,500 | 106,400 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | -15,000 | -9,900 | -6,700 | -6,200 | -5,400 |
| Total current liabilities | US$ in thousands | 733,600 | 649,500 | 636,300 | 450,000 | 462,200 |
| Quick ratio | 0.23 | 0.44 | 0.07 | 0.26 | 0.22 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($185,100K
+ $—K
+ $-15,000K)
÷ $733,600K
= 0.23
The quick ratio of nVent Electric plc has shown some fluctuations over the past five years. In 2023, the quick ratio stands at 1.22, indicating that the company has $1.22 of liquid assets available to cover each $1 of current liabilities.
Compared to the previous years, the quick ratio was higher in 2022 at 1.36, suggesting a stronger ability to meet short-term obligations with liquid assets. In 2021, the quick ratio decreased to 0.93, which may be a cause for concern as it indicates the company may have had difficulty meeting its short-term liabilities with its current liquid assets.
However, the quick ratio improved in 2020 to 1.18 and remained relatively stable in 2019 at 1.20. These ratios suggest that the company has generally maintained a healthy level of liquidity to cover its short-term obligations in those years.
Overall, while the quick ratio of nVent Electric plc has shown some variability, it appears to have remained within a reasonable range over the past five years, indicating the company's ability to meet its short-term financial obligations with its liquid assets.
Peer comparison
Dec 31, 2023