Pentair PLC (PNR)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,563,300 | 6,411,000 | 6,508,300 | 6,671,200 | 6,447,500 | 6,508,600 | 4,872,200 | 4,975,900 | 4,753,600 | 4,472,800 | 4,354,700 | 4,384,100 | 4,197,200 | 4,103,500 | 4,116,100 | 4,426,700 | 4,139,500 | 4,080,400 | 4,170,000 | 4,382,200 |
| 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 |
| Financial leverage ratio | 2.04 | 2.11 | 2.22 | 2.37 | 2.38 | 2.47 | 1.90 | 1.99 | 1.96 | 1.91 | 1.92 | 2.00 | 1.99 | 2.00 | 2.11 | 2.34 | 2.12 | 2.18 | 2.31 | 2.34 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,563,300K ÷ $3,217,100K
= 2.04
The financial leverage ratio of Pentair plc has been fluctuating over the past eight quarters, ranging from 1.90 to 2.47. In general, a financial leverage ratio above 1 indicates that the company relies more on debt financing than equity financing to support its operations and growth.
From Q1 2022 to Q1 2023, Pentair plc's financial leverage ratio increased steadily from 1.99 to 2.37, reaching its peak in Q1 2023. This upward trend suggests that the company has been taking on more debt relative to its equity during this period.
However, in Q2 2023, there was a slight decrease in the financial leverage ratio to 2.22, followed by a further decline in Q3 2023 to 2.11. This reduction indicates a potential shift towards a lower reliance on debt financing compared to the previous quarters.
In Q4 2023, the financial leverage ratio continued to decrease to 2.04, which suggests a possible strategic decision by Pentair plc to deleverage or adjust its capital structure towards a more balanced mix of debt and equity.
Overall, Pentair plc's financial leverage ratio has shown variability in recent quarters, indicating fluctuations in the company's capital structure and debt management strategies. Monitoring this metric can provide insights into the company's risk exposure, financial stability, and ability to meet its financial obligations.
Peer comparison
Dec 31, 2023