nVent Electric PLC (NVT)

Solvency ratios

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
Debt-to-assets ratio 0.32 0.28 0.28 0.28 0.31 0.33 0.22 0.22 0.22 0.22 0.22 0.21 0.21 0.23 0.21 0.21 0.24 0.26 0.26 0.23
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
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
Financial leverage ratio 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 1.79

nVent Electric PLC's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has ranged from 0.21 to 0.33 over the past five years, with the most recent value at 0.32 as of Sep 30, 2024. This suggests that 32% of the company's assets are financed by debt.

The debt-to-capital ratio has fluctuated between 0.28 and 0.41 during the same period, with the latest value standing at 0.40. This ratio reflects the proportion of the company's capital structure that is financed through debt, currently at 40%.

The debt-to-equity ratio has shown variability, ranging from 0.38 to 0.68 over the past five years. As of Sep 30, 2024, this ratio is at 0.68, indicating that 68% of the company's equity is financed by debt.

The financial leverage ratio, which measures the company's total debt relative to its equity, has been relatively stable between 1.76 and 2.11 over the analyzed period. The latest financial leverage ratio as of Sep 30, 2024, is at 2.11, showing that the company has $2.11 of debt for every dollar of equity.

Overall, nVent Electric PLC's solvency ratios suggest that the company has been managing its debt levels effectively, with a moderate to conservative approach in its capital structure. It is essential for the company to continue monitoring and managing these ratios to ensure financial stability and meet its long-term obligations.

Coverage ratios

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
Interest coverage 5.09 4.36 4.29 4.49 8.71 11.23 14.92 14.12 13.17 12.39 11.63 11.00 10.33 3.05 1.69 1.05 1.21 6.59 7.16 7.45

nVent Electric PLC's interest coverage ratio has fluctuated over the periods provided, indicating the company's ability to meet its interest obligations with its earnings. The interest coverage ratio measures how many times a company can cover its interest expenses with its operating income.

Looking at the trend, nVent Electric's interest coverage ratio has generally been healthy and above the industry average, demonstrating a strong ability to cover its interest costs. There was a noticeable decrease in interest coverage from the high of 14.92 in March 2023 to the low of 1.05 in March 2021. This decline could be a cause for concern as it indicates a potential strain on the company's ability to meet its interest payments.

However, it is worth noting that the interest coverage ratio has shown some recovery since March 2021, with the ratio steadily increasing in recent periods. As of September 30, 2024, the interest coverage ratio stands at a healthy 5.09, indicating an improvement in the company's ability to cover its interest expenses.

Overall, nVent Electric PLC's interest coverage ratio analysis suggests that the company has generally been able to comfortably meet its interest obligations, although investors and stakeholders should continue to monitor any fluctuations to ensure the company maintains a strong financial position.