Pentair PLC (PNR)
Debt-to-equity 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-equity ratio | 0.46 | 0.62 | 0.86 | 0.37 | 0.40 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,638,700K ÷ $3,562,900K
= 0.46
The debt-to-equity ratio of Pentair PLC has exhibited fluctuations over the past five years. As of December 31, 2020, the ratio stood at 0.40, indicating a moderate level of debt relative to equity. By December 31, 2021, the ratio had decreased to 0.37, suggesting a slight improvement in the company's leverage position. However, there was a notable increase in the ratio to 0.86 by December 31, 2022, indicating a higher reliance on debt financing compared to equity.
The trend reversed by December 31, 2023, with the ratio declining to 0.62, reflecting a reduction in the proportion of debt in Pentair's capital structure. Subsequently, as of December 31, 2024, the debt-to-equity ratio decreased further to 0.46, signaling a more balanced mix of debt and equity in the company's financial structure.
Overall, Pentair PLC's debt-to-equity ratio has shown variability during the period under review, with fluctuations that suggest shifts in the company's leverage strategy and financial risk profile. It is important for stakeholders to monitor this metric to assess the company's ability to manage its debt obligations effectively while maximizing shareholder value.
Peer comparison
Dec 31, 2024