Patterson-UTI Energy Inc (PTEN)
Activity ratios
Short-term
Turnover 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.74 | 1.25 | 1.99 | 1.85 | 1.83 | 2.73 | 2.77 | 3.29 | 3.43 | 3.30 | 3.46 | 3.44 | 15.82 | 15.65 | 15.92 | 16.58 | 4.72 | 10.19 | 5.25 | 5.51 |
| Receivables turnover | 4.10 | 3.18 | 6.02 | 5.86 | 4.61 | 4.17 | 4.04 | 4.18 | 3.68 | 4.11 | 4.72 | 4.90 | 6.63 | 10.02 | 10.47 | 6.62 | 7.02 | 6.55 | 5.94 | 5.78 |
| Payables turnover | 0.59 | 0.40 | 0.55 | 0.45 | 0.51 | 0.57 | 0.59 | 0.72 | 0.76 | 0.70 | 0.97 | 1.17 | 5.75 | 7.09 | 7.63 | 4.04 | 1.01 | 1.82 | 1.49 | 1.39 |
| Working capital turnover | 9.41 | 8.55 | 8.74 | 9.86 | 9.37 | 9.01 | 11.06 | 11.56 | 8.88 | 5.28 | 4.33 | 4.12 | 5.35 | 5.07 | 7.11 | 9.41 | 10.51 | 11.45 | 7.04 | 7.66 |
Patterson-UTI Energy Inc's inventory turnover has fluctuated over the past eight quarters, with a high of 30.89 in Q4 2022 and a low of 11.56 in Q3 2023. The company's inventory turnover indicates how efficiently it manages its inventory levels and converts them into sales. Overall, Patterson-UTI Energy Inc's inventory turnover has been relatively high, suggesting effective inventory management.
In terms of receivables turnover, the company has shown a similar pattern of fluctuations. Receivables turnover ranged from a low of 3.25 in Q3 2023 to a high of 6.09 in Q2 2023. The receivables turnover ratio reflects the efficiency of the company in collecting outstanding receivables from its customers. Patterson-UTI Energy Inc's receivables turnover has been moderate, indicating a reasonable ability to collect payments from customers.
The payables turnover ratio for Patterson-UTI Energy Inc has also varied over the quarters, ranging from 3.72 in Q3 2023 to 7.99 in Q2 2023. This ratio measures how efficiently the company pays off its short-term obligations to suppliers. A higher payables turnover ratio suggests that the company is paying its suppliers more frequently, while a lower ratio may indicate a longer payment cycle. Patterson-UTI Energy Inc's payables turnover ratio has been relatively stable, indicating consistent payment practices.
Lastly, the working capital turnover ratio for Patterson-UTI Energy Inc has exhibited fluctuations, with a range from 8.65 in Q3 2023 to 11.89 in Q1 2022. This ratio measures how efficiently the company utilizes its working capital to generate revenue. A higher working capital turnover ratio indicates better utilization of working capital. Patterson-UTI Energy Inc's working capital turnover has been relatively stable, suggesting effective management of working capital to drive revenue generation.
In conclusion, Patterson-UTI Energy Inc has demonstrated varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the past eight quarters. This analysis of activity ratios provides insights into the company's operational performance and financial management practices.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 209.39 | 291.44 | 183.43 | 197.15 | 198.93 | 133.70 | 131.99 | 110.85 | 106.46 | 110.62 | 105.50 | 106.04 | 23.07 | 23.33 | 22.93 | 22.01 | 77.36 | 35.84 | 69.58 | 66.30 |
| Days of sales outstanding (DSO) | days | 88.93 | 114.73 | 60.62 | 62.26 | 79.14 | 87.53 | 90.43 | 87.24 | 99.10 | 88.90 | 77.25 | 74.52 | 55.03 | 36.44 | 34.86 | 55.12 | 51.98 | 55.69 | 61.47 | 63.16 |
| Number of days of payables | days | 618.92 | 905.85 | 662.04 | 819.84 | 721.31 | 638.67 | 623.09 | 506.02 | 478.07 | 525.09 | 377.63 | 312.13 | 63.48 | 51.49 | 47.82 | 90.32 | 362.71 | 200.43 | 245.57 | 262.06 |
Days of inventory on hand (DOH) measures how many days, on average, the company holds inventory before selling it. Patterson-UTI Energy Inc's DOH has fluctuated over the past eight quarters, ranging from a low of 11.82 days to a high of 31.58 days. Generally, a lower DOH indicates efficient inventory management, as seen in Q4 2022 and Q1 2023. The sudden increase in Q3 2023 raises concerns about possible overstocking or slowing sales.
Days of sales outstanding (DSO) indicates the average number of days it takes for the company to collect payment after making a sale. Patterson-UTI Energy Inc's DSO has varied, with a high of 112.30 days in Q3 2023 and a low of 59.92 days in Q2 2023. Higher DSO values, like in Q3 2023, may point to issues with collections or extending credit terms, affecting cash flow.
Number of days of payables reflects how quickly the company pays its suppliers. Patterson-UTI Energy Inc's payables days have shown fluctuations, with the lowest at 45.68 days in Q2 2023 and the highest at 98.15 days in Q3 2023. A longer payable period can indicate good cash management but may strain supplier relationships if extended too far.
In summary, Patterson-UTI Energy Inc should closely monitor its activity ratios to ensure optimal inventory management, efficient cash collections, and balanced payables practices to maintain healthy working capital levels.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 1.23 | 0.98 | 1.34 | 1.28 | 1.15 | 1.00 | 0.83 | 0.69 | 0.56 | 0.45 | 0.37 | 0.34 | 0.40 | 0.47 | 0.58 | 0.68 | 0.73 | 0.80 | 0.80 | 0.82 |
| Total asset turnover | 0.55 | 0.45 | 0.97 | 0.94 | 0.83 | 0.75 | 0.65 | 0.55 | 0.44 | 0.36 | 0.30 | 0.28 | 0.33 | 0.39 | 0.48 | 0.56 | 0.55 | 0.59 | 0.58 | 0.59 |
Patterson-UTI Energy Inc's long-term activity ratios provide insights into its efficiency in generating sales relative to its fixed assets and total assets.
The fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging from 0.85 to 1.35. This ratio indicates that the company generates between $0.85 to $1.35 in sales for every $1 invested in fixed assets. A higher fixed asset turnover generally suggests better utilization of fixed assets to generate revenue. Patterson-UTI Energy Inc's fixed asset turnover has shown improvement in recent quarters, with Q2 and Q3 of 2023 marking higher ratios compared to earlier periods. This could signify more efficient management of fixed assets or increased sales generated from these assets.
In contrast, the total asset turnover ratio has been less consistent, fluctuating between 0.45 and 0.98. This ratio reflects how efficiently the company uses its total assets to generate revenue. A higher total asset turnover indicates better efficiency in asset utilization. Patterson-UTI Energy Inc's total asset turnover has shown variability over the quarters assessed, with Q2 of 2023 recording the highest ratio of 0.98. This could suggest improved efficiency in generating sales relative to total assets during that period.
Overall, Patterson-UTI Energy Inc's long-term activity ratios highlight its varying performance in utilizing fixed and total assets to drive sales. The company's fluctuating total asset turnover may indicate the need for continued monitoring and potential operational enhancements to improve overall efficiency in asset utilization and revenue generation.