nVent Electric PLC (NVT)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,748,800 | 1,068,200 | 994,200 | 928,000 | 1,047,100 |
| Total assets | US$ in thousands | 6,161,700 | 4,902,200 | 4,674,200 | 4,366,100 | 4,640,300 |
| Debt-to-assets ratio | 0.28 | 0.22 | 0.21 | 0.21 | 0.23 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,748,800K ÷ $6,161,700K
= 0.28
nVent Electric plc's debt-to-assets ratio has shown a slight increase over the past five years, ranging from 0.21 to 0.29. This ratio indicates the proportion of the company's assets funded by debt. In 2023, the ratio stands at 0.29, reflecting that 29% of the company's assets are financed by debt. This increase from the previous year suggests a higher reliance on debt financing for the company's operations and investments.
Overall, nVent Electric plc's debt-to-assets ratio indicates a moderate level of leverage, which could imply a moderate level of financial risk. It is important for investors and stakeholders to monitor changes in this ratio over time to assess the company's ability to meet its financial obligations and manage its debt levels effectively.
Peer comparison
Dec 31, 2023