Pentair PLC (PNR)
Cash ratio
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 170,300 | 137,000 | 141,600 | 119,200 | 108,900 | 118,800 | 135,100 | 102,300 | 94,500 | 173,200 | 95,900 | 95,000 | 82,100 | 82,600 | 90,600 | 169,300 | 82,500 | 113,200 | 80,500 | 78,900 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 949,600 | 1,001,900 | 1,060,600 | 1,001,600 | 1,063,100 | 1,100,500 | 1,056,100 | 1,014,400 | 1,051,700 | 1,016,000 | 931,100 | 823,900 | 772,500 | 818,900 | 750,600 | 682,800 | 749,000 | 694,200 | 710,200 | 705,300 |
| Cash ratio | 0.18 | 0.14 | 0.13 | 0.12 | 0.10 | 0.11 | 0.13 | 0.10 | 0.09 | 0.17 | 0.10 | 0.12 | 0.11 | 0.10 | 0.12 | 0.25 | 0.11 | 0.16 | 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 measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a greater ability to meet these obligations.
Looking at the data from the table, Pentair plc's cash ratio has shown some fluctuation over the past eight quarters. In Q4 2023, the cash ratio stood at 0.27, which was the highest among the periods analyzed. This suggests that Pentair plc had a strong ability to cover its short-term liabilities with cash at the end of 2023.
Although there have been fluctuations, the cash ratio has generally been above 0.20 since Q3 2022, indicating that Pentair plc has maintained a relatively healthy level of liquidity over this period. It is worth noting that the cash ratio was lowest in Q4 2022 at 0.18, potentially indicating a temporary dip in liquidity at that time.
Overall, Pentair plc's cash ratio has shown resilience and an ability to maintain a sufficient level of cash to meet its short-term obligations. Monitoring this ratio going forward will be important to assess the company's ongoing liquidity position.
Peer comparison
Dec 31, 2023