nVent Electric PLC (NVT)
Debt-to-equity 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-equity ratio | 0.68 | 0.53 | 0.54 | 0.56 | 0.63 | 0.68 | 0.39 | 0.39 | 0.41 | 0.41 | 0.41 | 0.40 | 0.38 | 0.44 | 0.38 | 0.39 | 0.44 | 0.47 | 0.47 | 0.40 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,220,700K ÷ $3,283,700K
= 0.68
nVent Electric PLC's debt-to-equity ratio has shown some variability over the past several quarters. As of September 30, 2024, the ratio stands at 0.68, indicating that the company had a higher level of debt relative to equity. This ratio has increased from the previous quarter, where it was at 0.53, suggesting a potential increase in debt compared to shareholder equity.
Looking back over the past year, the trend in the debt-to-equity ratio has shown some fluctuations but generally remained within a moderate range. The ratio peaked at 0.68 in the third quarter of 2023 before decreasing to 0.39 in the first quarter of 2023, a significant drop. It then gradually increased again, reaching 0.56 in the fourth quarter of 2023 before rising to the current level of 0.68.
The debt-to-equity ratio provides insight into nVent Electric PLC's capital structure and financial leverage. A ratio above 1 would indicate that the company has more debt than equity, which may pose risks in terms of financial stability and the ability to meet debt obligations. Conversely, a lower ratio suggests a stronger equity position relative to debt.
Overall, while the recent increase in the debt-to-equity ratio may raise some concerns about the company's debt levels, it is essential to consider this ratio in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of nVent Electric PLC's financial health and risk profile.
Peer comparison
Sep 30, 2024