Pentair PLC (PNR)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,638,700 | 1,988,300 | 2,317,300 | 894,100 | 839,600 |
| Total assets | US$ in thousands | 6,446,500 | 6,563,300 | 6,447,500 | 4,753,600 | 4,197,200 |
| Debt-to-assets ratio | 0.25 | 0.30 | 0.36 | 0.19 | 0.20 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,638,700K ÷ $6,446,500K
= 0.25
The debt-to-assets ratio reflects Pentair PLC's proportion of debt relative to its total assets over the years. The trend in the ratio indicates the company's leverage and risk exposure.
In 2020, Pentair had a debt-to-assets ratio of 0.20, implying that 20% of its assets were funded by debt. The ratio decreased slightly to 0.19 by the end of 2021, indicating a lower reliance on debt financing.
However, there was a significant increase in the ratio to 0.36 by the end of 2022, suggesting a higher level of debt compared to assets. Pentair managed to reduce the ratio to 0.30 by the end of 2023, indicating some progress in managing its debt levels.
By the end of 2024, the debt-to-assets ratio further decreased to 0.25, showing a continued effort to strengthen the balance sheet by reducing debt levels relative to assets.
Overall, Pentair's debt-to-assets ratio fluctuated over the years, with a general trend of maintaining a moderate level of debt relative to its asset base, which suggests a balanced approach to capital structure management.
Peer comparison
Dec 31, 2024