Pentair PLC (PNR)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 3,562,900 | 3,217,100 | 2,708,100 | 2,421,900 | 2,106,300 |
| Debt-to-capital ratio | 0.32 | 0.38 | 0.46 | 0.27 | 0.29 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,638,700K ÷ ($1,638,700K + $3,562,900K)
= 0.32
The debt-to-capital ratio of Pentair PLC has shown some fluctuations over the past five years. The ratio was 0.29 as of December 31, 2020, indicating that 29% of the company's capital was financed by debt. It decreased slightly to 0.27 by December 31, 2021, suggesting a lower reliance on debt for financing.
However, there was a notable increase in the ratio to 0.46 by December 31, 2022, signaling a higher proportion of debt in the company's capital structure. This increase could indicate a strategic decision to utilize more debt financing during that period.
By December 31, 2023, the debt-to-capital ratio had decreased to 0.38, showing a reduction in the debt component of the company's capital structure. This could reflect efforts to deleverage or a shift towards other forms of financing.
In the most recent year, the ratio decreased further to 0.32 as of December 31, 2024, suggesting a continued improvement in the company's debt management and potentially a stronger capital position.
Overall, the trending debt-to-capital ratio of Pentair PLC indicates fluctuations in the company's leverage levels and capital structure management over the five-year period. Further analysis would be needed to understand the reasons behind these fluctuations and evaluate the implications for the company's financial health and stability.
Peer comparison
Dec 31, 2024