nVent Electric PLC (NVT)
Debt-to-capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,220,700 | 1,730,600 | 1,739,800 | 1,748,800 | 1,861,500 | 1,968,800 | 1,079,600 | 1,068,200 | 1,086,700 | 1,048,200 | 1,045,800 | 994,200 | 976,500 | 1,103,900 | 943,200 | 928,000 | 1,052,800 | 1,207,600 | 1,211,200 | 1,047,100 |
| Total stockholders’ equity | US$ in thousands | 3,283,700 | 3,287,800 | 3,212,300 | 3,142,100 | 2,945,100 | 2,875,700 | 2,789,900 | 2,731,700 | 2,650,600 | 2,586,000 | 2,533,900 | 2,496,100 | 2,541,600 | 2,492,800 | 2,450,000 | 2,409,800 | 2,413,400 | 2,578,200 | 2,576,600 | 2,592,500 |
| Debt-to-capital ratio | 0.40 | 0.34 | 0.35 | 0.36 | 0.39 | 0.41 | 0.28 | 0.28 | 0.29 | 0.29 | 0.29 | 0.28 | 0.28 | 0.31 | 0.28 | 0.28 | 0.30 | 0.32 | 0.32 | 0.29 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,220,700K ÷ ($2,220,700K + $3,283,700K)
= 0.40
The debt-to-capital ratio of nVent Electric PLC has shown some fluctuations over the past few years, indicating changes in the company's capital structure. The ratio ranged from 0.28 to 0.41, with the most recent value reported at 0.40 as of September 30, 2024.
The trend in the debt-to-capital ratio suggests that the company has been managing its debt levels relative to its total capital in a relatively stable manner. However, the slight increase in the ratio from 0.34 in June 2024 to 0.40 in September 2024 may indicate a recent increase in debt relative to total capital, which could potentially raise concerns about the company's leverage.
Overall, a debt-to-capital ratio of around 0.40 indicates that nVent Electric PLC relies on debt for about 40% of its total capital, while equity covers the remaining 60%. It is essential for investors and stakeholders to continue monitoring the company's debt levels and capital structure to assess its financial risk and sustainability in the long term.
Peer comparison
Sep 30, 2024