nVent Electric PLC (NVT)
Quick ratio
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 49,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | -17,100 | -15,700 | -15,000 | -15,500 | -15,100 | -15,800 | -9,900 | -9,900 | -9,300 | -7,900 | -6,700 | -6,000 | -5,800 | -5,800 | -6,200 | -7,500 | -6,500 | -5,700 | -5,400 | — |
| Total current liabilities | US$ in thousands | 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 | 437,300 |
| Quick ratio | 0.39 | 0.28 | 0.23 | 0.15 | 0.20 | 0.48 | 0.44 | 0.29 | 0.08 | 0.07 | 0.07 | 0.07 | 0.18 | 0.21 | 0.26 | 0.37 | 0.59 | 0.45 | 0.22 | 0.11 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($274,000K
+ $—K
+ $-17,100K)
÷ $654,100K
= 0.39
The quick ratio of nVent Electric PLC has fluctuated over the given periods, ranging from a low of 0.07 to a high of 0.59. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.
Looking at the trend, the quick ratio has shown fluctuations, with periods of strength (above 0.5) and weakness (below 0.3). For instance, in some periods like March 31, 2023, the quick ratio was relatively strong at 0.48, indicating a comfortable liquidity position. In contrast, in periods like March 31, 2022, and March 31, 2021, the quick ratio was at a low of 0.07, suggesting potential liquidity challenges in meeting short-term obligations.
Overall, it is important for nVent Electric PLC to closely monitor its quick ratio and ensure it maintains a healthy level of liquidity to meet its short-term obligations promptly. Further analysis of the company's cash management practices and working capital efficiency may be required to improve and stabilize the quick ratio over time.
Peer comparison
Jun 30, 2024