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NVT (nVent Electric) Financial Strength : 7 (As of Mar. 2025)


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What is nVent Electric Financial Strength?

nVent Electric has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

nVent Electric's Interest Coverage for the quarter that ended in Mar. 2025 was 7.47. nVent Electric's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.58. As of today, nVent Electric's Altman Z-Score is 3.74.


Competitive Comparison of nVent Electric's Financial Strength

For the Electrical Equipment & Parts subindustry, nVent Electric's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


nVent Electric's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, nVent Electric's Financial Strength distribution charts can be found below:

* The bar in red indicates where nVent Electric's Financial Strength falls into.


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nVent Electric Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

nVent Electric's Interest Expense for the months ended in Mar. 2025 was $-17 Mil. Its Operating Income for the months ended in Mar. 2025 was $130 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $1,836 Mil.

nVent Electric's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*130/-17.4
=7.47

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

nVent Electric's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(39.2 + 1835.9) / 3237.2
=0.58

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

nVent Electric has a Z-score of 3.74, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.74 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


nVent Electric  (NYSE:NVT) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

nVent Electric has the Financial Strength Rank of 7.


nVent Electric Financial Strength Related Terms

Thank you for viewing the detailed overview of nVent Electric's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


nVent Electric Business Description

Traded in Other Exchanges
N/A
Address
1000 Great West Road, 8th Floor (East), The Mille, London, GBR, TW8 9DW
nVent is a leading global provider of electrical connection and protection solutions that touches a broad range of end markets including infrastructure, industrial, commercial, and residential. NVent designs, manufacturers, markets, installs, and services a portfolio of electrical enclosures and electrical fastening solutions. North America accounts for the majority of sales.
Executives
Lynnette R Heath officer: EVP & Chief HR Officer 1665 UTICA AVENUE, ST. LOUIS PARK MN 55416
Jerry W Burris director 5500 WAYZATA BLVD., SUITE 600, GOLDEN VALLEY MN 55416
Van Der Kolk Robert J. officer: See Remarks below 1665 UTICA AVENUE, ST. LOUIS PARK MN 55416
Sara E Zawoyski officer: EVP & Chief Financial Officer 1665 UTICA AVENUE, SUITE 700, ST. LOUIS PARK MN 55416
Randolph A. Wacker officer: SVP & Chief Accounting Officer 1665 UTICA AVENUE, ST. LOUIS PARK MN 55416
Jon D. Lammers officer: EVP, Gen. Counsel & Secretary C/O SPIRIT AEROSYSTEMS HOLDINGS, INC., 3801 SOUTH OLIVER STREET, WICHITA KS 67210
Herbert K Parker director 38505 WOODWARD AVENUE, SUITE 200, BLOOMFIELD HILLS MI 48304
Michael B Faulconer officer: President - Thermal Management 1665 UTICA AVENUE, ST. LOUIS PARK MN 55416
Joseph A. Ruzynski officer: President of Enclosures 1665 UTICA AVENUE, ST. LOUIS PARK MN 55416
Aravind Padmanabhan officer: EVP & Chief Technology Officer 1665 UTICA AVENUE, SUITE 700, ST. LOUIS PARK MN 55416
Randall J Hogan director 5500 WAYZATA BLVD., SUITE 600, GOLDEN VALLEY MN 55416
Beth Wozniak officer: Chief Executive Officer 555 WAYZATA BLVD. SUITE 600, MINNEAPOLIS MN 55419
Greg Scheu director 1665 UTICA AVENUE, ST. LOUIS PARK MN 55416
Susan M. Cameron director C/O TUPPERWARE BRANDS CORP, PO BOX 2353, ORLANDO FL 32802-2353
Danita K Ostling director 1665 UTICA AVENUE, ST. LOUIS PARK MN 55416