nVent Electric PLC (NVT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
nVent Electric PLC has consistently maintained a strong solvency position based on its solvency ratios analysis. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have remained at 0.00 across all quarters from March 31, 2020, to December 31, 2024. This indicates that the company carries no debt in relation to its assets, capital, or equity, reflecting a solid financial structure with low leverage.
However, the financial leverage ratio has shown some fluctuation over the same period, ranging from 1.76 to 2.11. Despite the variations, the ratios are within a reasonable range, suggesting that the company has been able to effectively manage its debt levels relative to its equity. Overall, these solvency ratios indicate that nVent Electric PLC is in a stable financial position with minimal debt obligations, which bodes well for its long-term financial health and operational resilience.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.57 | 6.02 | 6.79 | 6.80 | 7.55 | 10.18 | 12.82 | 16.92 | 16.18 | 13.58 | 12.84 | 12.09 | 11.45 | 10.07 | 2.71 | 1.36 | 0.74 | 1.31 | 6.68 | 7.24 |
nVent Electric PLC's interest coverage ratio provides insight into the company's ability to meet its interest payment obligations. A higher interest coverage ratio indicates that the company is more capable of covering its interest expenses with its operating income.
Looking at the historical trend of nVent Electric PLC's interest coverage ratio, we can observe fluctuations over the past few years. The interest coverage ratio was relatively stable and healthy from March 31, 2020, to September 30, 2021, with values ranging from around 1.31 to 10.07. However, there was a notable improvement in the company's interest coverage ratio from September 30, 2021, onwards, with the ratio consistently increasing to reach a peak of 16.92 on March 31, 2023.
After reaching its peak in the first quarter of 2023, nVent Electric PLC's interest coverage ratio experienced a decline, dropping to 5.57 by December 31, 2024. Although the ratio decreased over the latter half of 2023 and throughout 2024, it remained above 5, indicating that the company was still generating sufficient operating income to cover its interest expenses, albeit at a lower level compared to the previous periods.
In conclusion, nVent Electric PLC's interest coverage ratio has shown both resilience and variability over the analyzed period. While the company demonstrated strong interest coverage during certain quarters, it also experienced a decrease in its ability to cover interest payments towards the end of the period. Investors and stakeholders should continue to monitor the company's interest coverage ratio to assess its financial stability and ability to meet debt obligations.