nVent Electric PLC (NVT)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 3,142,100 | 2,731,700 | 2,496,100 | 2,409,800 | 2,592,500 |
| Debt-to-equity ratio | 0.56 | 0.39 | 0.40 | 0.39 | 0.40 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,748,800K ÷ $3,142,100K
= 0.56
The debt-to-equity ratio of nVent Electric plc has been exhibiting a fluctuating trend over the past five years. In 2023, the ratio increased to 0.57 from 0.40 in 2022, indicating a higher level of debt relative to equity in the company's capital structure. This may signal increased financial leverage and potential risk associated with debt obligations.
Comparing the 2023 ratio to historical data, the company's debt-to-equity ratio is higher than the levels seen in 2021, 2020, and 2019. However, it is important to note that the ratio in 2023 is still within a moderate range and not at alarming levels.
Overall, the upward trend in the debt-to-equity ratio of nVent Electric plc suggests a shift towards a more debt-heavy capital structure in recent years. It is crucial for investors and stakeholders to monitor this ratio closely to assess the company's financial risk and leverage position.
Peer comparison
Dec 31, 2023