Pentair PLC (PNR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,446,500 | 6,563,300 | 6,447,500 | 4,753,600 | 4,197,200 |
| Total stockholders’ equity | US$ in thousands | 3,562,900 | 3,217,100 | 2,708,100 | 2,421,900 | 2,106,300 |
| Financial leverage ratio | 1.81 | 2.04 | 2.38 | 1.96 | 1.99 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,446,500K ÷ $3,562,900K
= 1.81
The financial leverage ratio of Pentair PLC, a measure of the company's level of debt financing relative to its equity, has shown fluctuations over the years. As of December 31, 2020, the financial leverage ratio stood at 1.99, indicating that the company had a higher proportion of debt to equity. Subsequently, by December 31, 2021, the ratio decreased slightly to 1.96, suggesting a slight improvement in the company's debt-to-equity mix.
However, by December 31, 2022, the financial leverage ratio increased to 2.38, signifying a higher reliance on debt for financing compared to equity. This may raise concerns about the company's ability to manage its debt levels effectively. The ratio then decreased to 2.04 by December 31, 2023, indicating some progress in reducing the debt burden.
As of December 31, 2024, the financial leverage ratio decreased further to 1.81, which could be interpreted positively as a lower level of debt relative to equity. Overall, the fluctuations in Pentair PLC's financial leverage ratio reflect changes in its capital structure and debt management practices over the years.
Peer comparison
Dec 31, 2024