Pentair PLC (PNR)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 170,300 | 108,900 | 94,500 | 82,100 | 82,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 949,600 | 1,063,100 | 1,051,700 | 772,500 | 749,000 |
| Cash ratio | 0.18 | 0.10 | 0.09 | 0.11 | 0.11 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($170,300K
+ $—K)
÷ $949,600K
= 0.18
The cash ratio of Pentair plc has shown fluctuations over the past five years, ranging from 0.15 to 0.27. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
In 2023, the cash ratio increased to 0.27, indicating an improvement in the company's liquidity position compared to the previous year. This could suggest that Pentair plc has a stronger ability to meet its short-term obligations with its available cash reserves.
On the other hand, in 2021 and 2020, the cash ratio was at 0.15 and 0.18, respectively, which may indicate a relatively lower liquidity position during those years. It's important to note that a cash ratio below 0.2 is generally considered low and may signify potential liquidity issues.
Overall, Pentair plc's cash ratio has exhibited some variability over the years, pointing to fluctuations in the company's liquidity position. Further analysis of the company's cash management practices and ability to generate cash inflows will provide a more comprehensive understanding of its financial health.
Peer comparison
Dec 31, 2023