nVent Electric PLC (NVT)
Financial leverage ratio
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,734,900 | 6,918,000 | 6,188,100 | 6,169,700 | 6,161,700 | 5,925,700 | 5,922,100 | 4,916,400 | 4,902,200 | 4,875,900 | 4,765,600 | 4,703,600 | 4,674,200 | 4,678,900 | 4,709,800 | 4,398,000 | 4,366,100 | 4,410,600 | 4,712,400 | 4,730,200 |
| Total stockholders’ equity | US$ in thousands | 3,237,600 | 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 |
| Financial leverage ratio | 2.08 | 2.11 | 1.88 | 1.92 | 1.96 | 2.01 | 2.06 | 1.76 | 1.79 | 1.84 | 1.84 | 1.86 | 1.87 | 1.84 | 1.89 | 1.80 | 1.81 | 1.83 | 1.83 | 1.84 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,734,900K ÷ $3,237,600K
= 2.08
The financial leverage ratio of nVent Electric PLC has shown some fluctuations over the past few years. Starting at 1.84 in March 2020, the ratio decreased slightly to 1.80 by March 2021, indicating a reduction in financial leverage. However, the ratio increased to 1.89 by June 2021 before stabilizing around the range of 1.80 to 1.90 until March 2023.
From June 2023 to September 2024, there was a significant increase in the financial leverage ratio, peaking at 2.11 by September 30, 2024. This suggests that nVent Electric PLC may have increased its reliance on debt financing during this period.
Overall, the trend in the financial leverage ratio indicates fluctuations but with a general upward trajectory in recent periods, potentially signaling an increased level of debt relative to equity in the company's capital structure. This could indicate a need for further analysis and monitoring of the company's financial position and risk profile.
Peer comparison
Dec 31, 2024