nVent Electric PLC (NVT)

Solvency ratios

	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
Debt-to-assets ratio	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	0.25
Debt-to-capital ratio	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	0.31
Debt-to-equity ratio	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	0.45
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

nVent Electric PLC's solvency ratios provide insights into the company's ability to meet its financial obligations over the long term.

1. Debt-to-assets ratio: nVent has maintained a relatively stable debt-to-assets ratio around 0.22 to 0.33 over the past few quarters. This indicates that around 22% to 33% of the company's assets are financed by debt.

2. Debt-to-capital ratio: The debt-to-capital ratio has also shown stability, ranging from 0.28 to 0.41. This ratio reveals that debt constitutes around 28% to 41% of nVent's total capital structure.

3. Debt-to-equity ratio: nVent's debt-to-equity ratio has varied between 0.38 to 0.68. The higher ratios suggest a greater reliance on debt financing compared to equity. nVent's leverage through debt has been significant, with debt representing 38% to 68% of total equity.

4. Financial leverage ratio: The financial leverage ratio has fluctuated between 1.76 to 2.06, indicating the company's use of debt to finance its operations. A ratio above 1 indicates that nVent has more debt than equity in its capital structure.

Overall, while nVent's solvency ratios have been relatively stable over the periods analyzed, the company has maintained a moderately leveraged financial position with a significant reliance on debt to fund its operations and investments. Investors and creditors may monitor these ratios to assess nVent's long-term financial health and risk levels.

Coverage ratios

	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
Interest coverage	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	7.72

nVent Electric PLC has shown varying levels of interest coverage over the past few quarters. The interest coverage ratio measures the company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates a stronger ability to meet interest payments.

Looking at the data provided, we can see that nVent Electric's interest coverage has generally been healthy, with ratios typically above 5. However, there have been fluctuations in the ratio over time. In the most recent quarter, the interest coverage ratio was 4.36, which indicates the company's ability to cover its interest payments improved slightly compared to the previous quarter.

The trend of declining interest coverage from late 2022 through the first half of 2023, followed by a significant improvement in the third quarter of 2023, suggests some variability in the company's earnings and ability to cover interest expenses. It is noteworthy that the interest coverage ratio was notably above 10 for several quarters in mid-2023, indicating a strong ability to service debt obligations.

Overall, nVent Electric PLC's interest coverage has generally been healthy, with some fluctuations in recent quarters. Investors and stakeholders should continue to monitor this ratio to ensure the company can continue to meet its interest obligations comfortably.