Pentair PLC (PNR)

Solvency ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Debt-to-assets ratio	0.25	0.25	0.27	0.31	0.30	0.31	0.32	0.37	0.36	0.38	0.19	0.22	0.19	0.16	0.16	0.21	0.20	0.20	0.25	0.33
Debt-to-capital ratio	0.32	0.32	0.34	0.39	0.38	0.40	0.42	0.47	0.46	0.48	0.26	0.30	0.27	0.23	0.24	0.30	0.29	0.28	0.34	0.43
Debt-to-equity ratio	0.46	0.47	0.51	0.63	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
Financial leverage ratio	1.81	1.85	1.91	2.03	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

Pentair PLC's solvency ratios reflect the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio: Pentair's debt-to-assets ratio has fluctuated over the years, showing a decreasing trend from 0.33 in March 2020 to 0.25 in June 2020, and reaching its lowest point at 0.16 in June 2021. However, there was an increase in the ratio towards the end of the period, indicating higher debt levels compared to total assets.

2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio declined from 0.43 in March 2020 to 0.24 in June 2021, but increased in the following periods, hitting 0.32 in December 2024. This ratio indicates the proportion of debt in the company's capital structure, with levels above 0.50 suggesting higher financial risk.

3. Debt-to-equity ratio: Pentair's debt-to-equity ratio has shown variability, with a general downward trend from 0.77 in March 2020 to 0.46 in December 2024. The ratio peaked at 0.93 in September 2022, indicating a higher reliance on debt to finance its operations.

4. Financial leverage ratio: The financial leverage ratio measures the company's total assets in relation to equity, indicating leverage used to generate profits. Pentair's ratio ranged between 1.81 and 2.47, with a decreasing trend over the years, which could suggest improved financial flexibility.

Overall, the solvency ratios of Pentair PLC show a mix of trends, reflecting changes in the company's capital structure and debt levels over the evaluated periods. It is important for investors and stakeholders to monitor these ratios to assess the company's ability to sustain its financial health and manage its long-term obligations effectively.

Coverage ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Interest coverage	9.07	7.76	7.20	6.51	6.25	7.46	9.94	16.32	66.14	63.44	57.93	62.56	50.95	39.46	31.24	23.43	19.31	17.44	15.82	15.68

The interest coverage ratio for Pentair PLC has shown a generally positive trend over the reporting periods from March 31, 2020, to December 31, 2024. The ratio has consistently increased from 15.68 in March 2020 to a peak of 66.14 in December 2022, indicating the company's ability to meet its interest obligations with its operating income.

However, there was a significant drop in the interest coverage ratio in the subsequent periods, with ratios falling to single digits by June 30, 2023. This may suggest a potential strain on Pentair's ability to cover its interest expenses with its operating income during that period.

It is essential for stakeholders to monitor this ratio closely to ensure that Pentair maintains a healthy level of interest coverage to avoid financial distress or potential difficulties in meeting its debt obligations. Monitoring trends and potential contributing factors to the fluctuations in the interest coverage ratio can provide valuable insights into the company's financial health and stability.