Pentair PLC (PNR)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,988,300 | 2,317,300 | 894,100 | 839,600 | 1,029,100 |
| Total stockholders’ equity | US$ in thousands | 3,217,100 | 2,708,100 | 2,421,900 | 2,106,300 | 1,953,900 |
| Debt-to-equity ratio | 0.62 | 0.86 | 0.37 | 0.40 | 0.53 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,988,300K ÷ $3,217,100K
= 0.62
The debt-to-equity ratio of Pentair plc has fluctuated over the past five years, ranging from 0.37 to 0.86. A lower debt-to-equity ratio indicates that the company has a lower level of debt relative to its equity, suggesting less financial risk and a stronger financial position.
In 2023, the debt-to-equity ratio decreased to 0.62 from 0.86 in 2022, indicating a reduction in the company's reliance on debt financing compared to the prior year. This could be viewed positively as it may signify improved financial stability and less leverage.
However, it is essential to consider that a low debt-to-equity ratio may also imply lower profitability potential compared to companies with higher leverage. Overall, Pentair plc's debt-to-equity ratio trend indicates fluctuations in the company's capital structure and financial risk profile over the years.
Peer comparison
Dec 31, 2023