Dril-Quip Inc (DRQ)
Debt-to-assets 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total assets | US$ in thousands | 1,028,180 | 1,007,570 | 979,666 | 975,396 | 969,951 | 968,603 | 973,566 | 978,110 | 1,009,930 | 1,093,740 | 1,124,710 | 1,126,830 | 1,151,170 | 1,159,540 | 1,147,690 | 1,136,110 | 1,206,560 | 1,205,640 | 1,201,900 | 1,183,730 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $1,028,180K
= 0.00
Based on the data provided, Dril-Quip, Inc. has consistently recorded a debt-to-assets ratio of 0.00 across all quarters from Q1 2022 to Q4 2023. This indicates that the company has not had any debt on its balance sheet relative to its total assets during this period. A zero debt-to-assets ratio suggests that Dril-Quip has been relying solely on equity financing to fund its operations and investments.
While a low or zero debt-to-assets ratio is generally considered positive as it implies lower financial risk and greater financial flexibility, it is essential to consider the context of the company's industry and growth prospects. In the case of Dril-Quip, being in the oil and gas equipment industry, where capital-intensive projects are common, a zero debt-to-assets ratio may limit the company's capacity for expansion and potential returns on investment.
Overall, the consistent presence of a zero debt-to-assets ratio over multiple quarters suggests a conservative financial strategy by Dril-Quip, focusing on financial stability and minimizing interest expenses. However, the company may need to evaluate its capital structure in the future to optimize its financing mix and support long-term growth objectives.
Peer comparison
Dec 31, 2023