Pentair PLC (PNR)

Solvency ratios

	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
Debt-to-assets ratio	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	0.25	0.27	0.29	0.31
Debt-to-capital ratio	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	0.34	0.37	0.40	0.42
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
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

Pentair plc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a fluctuating trend over the quarters, ranging from 0.19 to 0.37. This ratio indicates the proportion of the company's assets financed by debt, with lower values suggesting a lower reliance on debt for funding.

The debt-to-capital ratio and debt-to-equity ratio also exhibit variability over the periods, with values ranging from 0.26 to 0.47 and 0.36 to 0.89, respectively. These ratios highlight the extent to which debt contributes to the company's capital structure. Higher values suggest a higher level of financial risk due to increased reliance on debt financing.

The financial leverage ratio, which measures the company's total assets relative to its equity, shows fluctuations between 1.90 and 2.47. This ratio indicates the proportion of the company's assets funded by debt compared to equity. A higher financial leverage ratio indicates higher financial risk and leverage, which can magnify returns but also increase the likelihood of financial distress.

Overall, Pentair plc's solvency ratios reflect varying levels of debt utilization and financial risk over the quarters. It is essential for stakeholders to monitor these ratios to assess the company's long-term financial health and risk exposure.

Coverage ratios

	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
Interest coverage	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	14.37	14.95	16.45	15.59

The interest coverage ratio of Pentair plc has shown a declining trend over the past year, starting at a high of 47.76 in Q1 2022 and gradually decreasing to 6.25 in Q4 2023. This indicates that the company's ability to cover its interest expenses with its operating income has weakened over time.

While the interest coverage ratio fluctuated between 5.73 and 7.15 in the first three quarters of 2023, it experienced a significant drop from Q3 to Q4 2023. This decline may raise concerns about Pentair's ability to meet its debt obligations comfortably in the future, as a lower interest coverage ratio suggests a higher risk of default.

The steep decrease in the interest coverage ratio from levels exceeding 35 in Q2 and Q1 2022 to below 10 in Q4 2022 and Q1 2023 highlights a notable deterioration in Pentair's financial health and debt-servicing capacity. It is important for investors and creditors to closely monitor this trend and assess the company's ability to generate sufficient income to cover its interest payments going forward.