Pentair PLC (PNR)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,569,000 | 1,558,500 | 1,304,000 | 975,100 | 1,061,900 |
| Total current liabilities | US$ in thousands | 949,600 | 1,063,100 | 1,051,700 | 772,500 | 749,000 |
| Current ratio | 1.65 | 1.47 | 1.24 | 1.26 | 1.42 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,569,000K ÷ $949,600K
= 1.65
The current ratio of Pentair plc has shown fluctuating trends over the past five years. In 2023, the ratio improved to 1.65, indicating the company had $1.65 in current assets for every $1 in current liabilities, which suggests improved liquidity compared to the previous year.
The upward trend in the current ratio from 2021 to 2023 indicates a strengthening liquidity position, potentially due to better management of current assets relative to current liabilities.
However, the ratio was highest in 2019 at 1.42 before dipping in 2021, which may suggest that the company faced liquidity challenges or changes in its working capital management during that period.
Overall, while the current ratio has shown volatility, the recent improvement signifies a healthier liquidity position for Pentair plc in 2023. It is essential for the company to monitor and maintain an optimal current ratio to ensure its ability to meet short-term obligations efficiently.
Peer comparison
Dec 31, 2023