Pentair PLC (PNR)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 118,700 | 170,300 | 108,900 | 94,500 | 82,100 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 895,100 | 949,600 | 1,063,100 | 1,051,700 | 772,500 |
| Cash ratio | 0.13 | 0.18 | 0.10 | 0.09 | 0.11 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($118,700K
+ $—K)
÷ $895,100K
= 0.13
The cash ratio for Pentair PLC has shown some fluctuations over the past five years. The ratio measures the company's ability to cover its short-term liabilities using only its cash and cash equivalents.
As of December 31, 2020, Pentair had a cash ratio of 0.11, indicating that for every dollar of current liabilities, the company had $0.11 in cash and cash equivalents. The ratio decreased slightly to 0.09 by December 31, 2021, which may suggest a decrease in liquidity or an increase in short-term obligations.
However, by December 31, 2022, the cash ratio increased to 0.10, showing a slight improvement in the company's ability to cover its short-term liabilities with cash. The ratio then saw a significant increase to 0.18 by December 31, 2023, which could indicate better liquidity position and strengthened ability to meet immediate payment obligations.
The cash ratio decreased slightly to 0.13 by December 31, 2024, but overall, the trend suggests that Pentair PLC has maintained a reasonable level of liquidity over the years, with some fluctuations. It is important for investors and stakeholders to monitor this ratio to assess the company's ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024