Pentair PLC (PNR)
Debt-to-equity ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,988,300 | 1,993,600 | 2,114,700 | 2,491,800 | 2,317,300 | 2,448,100 | 911,500 | 1,091,100 | 894,100 | 700,900 | 716,600 | 932,400 | 839,600 | 805,200 | 1,013,000 | 1,450,500 | 1,029,100 | 1,118,700 | 1,215,100 | 1,370,700 |
| Total stockholders’ equity | US$ in thousands | 3,217,100 | 3,040,900 | 2,935,300 | 2,809,500 | 2,708,100 | 2,639,200 | 2,563,000 | 2,503,900 | 2,421,900 | 2,338,100 | 2,271,600 | 2,193,800 | 2,106,300 | 2,049,800 | 1,949,700 | 1,892,500 | 1,953,900 | 1,868,800 | 1,806,600 | 1,870,400 |
| Debt-to-equity ratio | 0.62 | 0.66 | 0.72 | 0.89 | 0.86 | 0.93 | 0.36 | 0.44 | 0.37 | 0.30 | 0.32 | 0.43 | 0.40 | 0.39 | 0.52 | 0.77 | 0.53 | 0.60 | 0.67 | 0.73 |
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 shown some fluctuations in recent quarters. In Q4 2023, the ratio was 0.62, indicating that the company had $0.62 in debt for every $1 of equity. This was a decrease from the previous quarter's ratio of 0.66. The trend of decreasing debt-to-equity ratios from Q2 2023 to Q4 2023 suggests that Pentair plc has been reducing its reliance on debt financing in relation to equity.
It is worth noting that the ratio reached its peak in Q1 2023 at 0.89, indicating a higher level of debt relative to equity at that time. However, the company managed to improve its financial structure in the following quarters.
Comparing the current ratio with the same period in the previous year, Q4 2022 had a slightly higher ratio of 0.86. Similarly, in Q2 2022, the company had a significantly lower ratio of 0.36, which indicates a much lower level of debt compared to equity at that time.
Overall, the decreasing trend in the debt-to-equity ratio suggests that Pentair plc has been managing its debt levels effectively and moving towards a more balanced capital structure with less reliance on debt financing. This could indicate improved financial stability and lower financial risk for the company.
Peer comparison
Dec 31, 2023