nVent Electric (nVent Electric) Interest Coverage : 6.57 (As of Dec. 2023)

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What is nVent Electric Interest Coverage?

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 by its Interest Expense. nVent Electric's Operating Income for the three months ended in Dec. 2023 was $160 Mil. nVent Electric's Interest Expense for the three months ended in Dec. 2023 was $-24 Mil. nVent Electric's interest coverage for the quarter that ended in Dec. 2023 was 6.57. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for nVent Electric's Interest Coverage or its related term are showing as below:

NVT' s Interest Coverage Range Over the Past 10 Years
Min: 7.11 Med: 11 Max: 1580.5
Current: 7.4

NVT's Interest Coverage is ranked worse than
63.33% of 2291 companies
in the Industrial Products industry
Industry Median: 13.67 vs NVT: 7.40

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

nVent Electric Interest Coverage Historical Data

The historical data trend for nVent Electric's Interest Coverage can be seen below:

* 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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nVent Electric Interest Coverage Chart

nVent Electric Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

7.45

7.11

11.00

14.12

7.40

nVent Electric Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															14.89	15.91	6.76	6.13	6.57

Competitive Comparison of nVent Electric's Interest Coverage

For the Electrical Equipment & Parts subindustry, nVent Electric's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution in the Industrial Products Industry

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

* The bar in red indicates where nVent Electric's Interest Coverage falls into.

nVent Electric Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

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

nVent Electric's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, nVent Electric's Interest Expense was $-79 Mil. Its Operating Income was $587 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,847 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	587.4	/	-79.4
	=	7.40

nVent Electric's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, nVent Electric's Interest Expense was $-24 Mil. Its Operating Income was $160 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,847 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	160.4	/	-24.4
	=	6.57

The higher the ratio, the stronger the company's Financial Strength is.

nVent Electric (NYSE:NVT) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

nVent Electric Interest Coverage Related Terms

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

nVent Electric (nVent Electric) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » nVent Electric PLC (NYSE:NVT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

1000 Great West Road, 8th Floor (East), The Mille, London, GBR, TW8 9DW

Website

https://www.nvent.com

nVent Electric PLC is a provider of electrical connection and protection solutions. The company segments include Enclosures, Thermal Management, and Electrical and Fastening Solutions. It generates maximum revenue from the Enclosures segment. The Enclosures segment provides inventive solutions that protect, connect and manage heat in critical electronics, communication, control, and power equipment. Geographically, it derives a majority of revenue from the U.S. and Canada. The company serves the Commercial and Residential, Energy, Industrial Solutions, and Infrastructure industries. Its products include Cabinets and Electronic Packaging, Electrical Fasteners, Hangers and Support, Concrete Reinforcing Steel Connections, Data Center and Networking Systems and others.

Executives

Michael B Faulconer	officer: President - Thermal Management	1665 UTICA AVENUE, ST. LOUIS PARK MN 55416
Randolph A. Wacker	officer: SVP & Chief Accounting Officer	1665 UTICA AVENUE, ST. LOUIS PARK MN 55416
Joseph A. Ruzynski	officer: President of Enclosures	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
Lynnette R Heath	officer: EVP & Chief HR Officer	1665 UTICA AVENUE, ST. LOUIS PARK MN 55416
Beth Wozniak	officer: Chief Executive Officer	555 WAYZATA BLVD. SUITE 600, MINNEAPOLIS MN 55419
Jon D. Lammers	officer: EVP, Gen. Counsel & Secretary	C/O SPIRIT AEROSYSTEMS HOLDINGS, INC., 3801 SOUTH OLIVER STREET, WICHITA KS 67210
Greg Scheu	director	1665 UTICA AVENUE, ST. LOUIS PARK MN 55416
Michael L Ducker	director	P O BOX 813, LIBERTY CORNER NJ 07938
Herbert K Parker	director	38505 WOODWARD AVENUE, SUITE 200, BLOOMFIELD HILLS MI 48304
Danita K Ostling	director	1665 UTICA AVENUE, ST. LOUIS PARK MN 55416
Sherry A Aaholm	director	500 JACKSON STREET, COLUMBUS IN 47201
Susan M. Cameron	director	C/O TUPPERWARE BRANDS CORP, PO BOX 2353, ORLANDO FL 32802-2353
Jacqueline Wright	director	1665 UTICA AVENUE, SUITE 700, ST. LOUIS PARK MN 55416
Nicola Palmer	director	1665 UTICA AVENUE, ST. LOUS PARK MN 55416