nVent Electric PLC (NVT)
Financial leverage ratio
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 4,640,300 | 4,636,100 |
| Total stockholders’ equity | US$ in thousands | 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 | 2,566,500 |
| Financial leverage ratio | 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 | 1.79 | 1.81 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,188,100K ÷ $3,287,800K
= 1.88
The financial leverage ratio of nVent Electric PLC has exhibited some fluctuations over the past few quarters. The ratio has shown a general upward trend from 1.76 in March 2021 to 2.06 in June 2023, indicating an increase in the company's reliance on debt to finance its operations and growth. However, it decreased slightly to 1.88 in June 2024, suggesting a potential reduction in debt levels relative to its equity.
Overall, the financial leverage ratio has fluctuated within a range of 1.76 to 2.06 over the analyzed period, with an average ratio of approximately 1.87. This indicates that nVent Electric PLC has maintained a moderate level of financial leverage, balancing its use of debt with equity financing.
It is important for investors and stakeholders to monitor changes in the financial leverage ratio to assess the company's risk profile and financial stability, as higher leverage can increase the company's financial risk and interest burden. The recent decrease in the ratio may suggest a prudent approach by nVent Electric PLC to manage its debt levels and maintain a healthy balance sheet position.
Peer comparison
Jun 30, 2024