Pentair PLC (PNR)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,563,300 | 6,447,500 | 4,753,600 | 4,197,200 | 4,139,500 |
| Total stockholders’ equity | US$ in thousands | 3,217,100 | 2,708,100 | 2,421,900 | 2,106,300 | 1,953,900 |
| Financial leverage ratio | 2.04 | 2.38 | 1.96 | 1.99 | 2.12 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,563,300K ÷ $3,217,100K
= 2.04
The financial leverage ratio for Pentair plc has fluctuated over the past five years. In 2023, the financial leverage ratio decreased to 2.04 from 2.38 in 2022, indicating a reduction in financial leverage. This suggests that Pentair plc relied less on debt financing in 2023 compared to the previous year.
Looking back further, the financial leverage ratio was 1.96 in 2021, 1.99 in 2020, and 2.12 in 2019. The ratio has exhibited some variability over the period, with a peak in 2019 and a subsequent decline in recent years.
Overall, the trend in the financial leverage ratio indicates that Pentair plc has made efforts to manage its leverage and potentially reduce its reliance on debt financing in recent years. This could be a strategic decision to strengthen the company's financial position and mitigate risks associated with high debt levels.
Peer comparison
Dec 31, 2023