Patterson-UTI Energy Inc (PTEN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.36 | 3.17 | 2.65 | 2.14 | 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 |
| Receivables turnover | 6.82 | 6.45 | 6.04 | 5.41 | 4.15 | 3.21 | 6.06 | 5.88 | 4.61 | 4.17 | 4.04 | 4.18 | 3.68 | 4.11 | 4.72 | 4.90 | 6.63 | 10.02 | 10.47 | 6.62 |
| Payables turnover | 1.33 | 1.11 | 0.96 | 0.72 | 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 |
| Working capital turnover | 11.86 | 13.07 | 12.74 | 11.11 | 9.53 | 8.64 | 8.79 | 9.89 | 9.37 | 9.01 | 11.06 | 11.56 | 8.88 | 5.28 | 4.33 | 4.12 | 5.35 | 5.07 | 7.11 | 9.41 |
The activity ratios of Patterson-UTI Energy Inc provide valuable insights into the efficiency with which the company manages its assets and working capital.
1. Inventory Turnover: The inventory turnover ratio measures how efficiently the company manages its inventory. The declining trend in inventory turnover from 16.58 in March 2020 to 3.36 in December 2024 indicates that the company is taking more time to sell its inventory, which could lead to potential obsolescence or storage costs.
2. Receivables Turnover: The receivables turnover ratio evaluates how quickly the company collects its accounts receivable. Patterson-UTI Energy Inc experienced fluctuations in this ratio, with a peak of 6.82 in December 2024. The variations suggest changes in the company's credit policies or the efficiency of its collections department.
3. Payables Turnover: The payables turnover ratio reflects how efficiently the company pays its suppliers. The decreasing trend in payables turnover from 7.63 in June 2020 to 1.33 in December 2024 implies that Patterson-UTI Energy Inc is taking more time to settle its payables, which could impact supplier relationships or working capital management.
4. Working Capital Turnover: The working capital turnover ratio measures how effectively the company utilizes its working capital to generate sales. The fluctuating but generally increasing trend in this ratio indicates improvements in working capital efficiency over the years, reaching a peak of 13.07 in September 2024. This suggests that the company is using its working capital more effectively to support its revenue generation activities.
In conclusion, while Patterson-UTI Energy Inc has shown improvements in working capital turnover, there are concerns regarding inventory management and payables turnover that may require further attention to enhance operational efficiency and cash flow management.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 108.69 | 115.13 | 137.64 | 170.45 | 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 |
| Days of sales outstanding (DSO) | days | 53.52 | 56.57 | 60.41 | 67.43 | 87.85 | 113.58 | 60.26 | 62.08 | 79.14 | 87.53 | 90.43 | 87.24 | 99.10 | 88.90 | 77.25 | 74.52 | 55.03 | 36.44 | 34.86 | 55.12 |
| Number of days of payables | days | 274.18 | 328.81 | 380.40 | 507.01 | 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 |
Patterson-UTI Energy Inc's activity ratios provide insight into how efficiently the company manages its inventory, collects its receivables, and pays its payables.
1. Days of Inventory on Hand (DOH):
- The DOH ratio measures how many days it takes for the company to sell its inventory.
- The trend shows an increase in DOH from 22.01 days on March 31, 2020, to a peak of 291.44 days on September 30, 2023, before improving to 108.69 days on December 31, 2024.
- The significant fluctuations in DOH indicate challenges in managing inventory levels efficiently over the years.
2. Days of Sales Outstanding (DSO):
- The DSO ratio indicates the average number of days it takes the company to collect its accounts receivable.
- The trend shows fluctuation in DSO from 34.86 days on June 30, 2020, to a peak of 113.58 days on September 30, 2023, and then improving to 53.52 days on December 31, 2024.
- The fluctuating DSO suggests potential issues with credit policies or the collection process.
3. Number of Days of Payables:
- This ratio reflects the average number of days it takes the company to pay its accounts payable.
- The trend shows an increase in the number of days of payables from 47.82 days on June 30, 2020, to a peak of 905.85 days on September 30, 2023, before decreasing to 274.18 days on December 31, 2024.
- The significant increase and subsequent decrease in days of payables indicate challenges in managing payables efficiently, which could impact cash flow and relationships with suppliers.
In conclusion, Patterson-UTI Energy Inc's activity ratios demonstrate fluctuations and challenges in managing inventory, receivables, and payables efficiently over the years. Further analysis and improvement in these areas may be necessary to enhance the company's overall financial performance and operational effectiveness.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 1.79 | 1.87 | 1.69 | 1.47 | 1.24 | 0.99 | 1.35 | 1.29 | 1.15 | 1.00 | 0.83 | 0.69 | 0.56 | 0.45 | 0.37 | 0.34 | 0.40 | 0.47 | 0.58 | 0.68 |
| Total asset turnover | 0.92 | 0.97 | 0.78 | 0.67 | 0.56 | 0.45 | 0.98 | 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 |
The Fixed Asset Turnover ratio for Patterson-UTI Energy Inc has shown variability over the reporting periods, starting at 0.68 on March 31, 2020, and reaching 1.79 by December 31, 2024. This ratio indicates the efficiency of the company in generating revenue from its investment in fixed assets. The increasing trend suggests that the company has been able to generate more revenue relative to its investment in fixed assets over time.
On the other hand, the Total Asset Turnover ratio demonstrates how efficiently the company is utilizing all its assets to generate revenue. Patterson-UTI Energy Inc's Total Asset Turnover ratio started at 0.56 on March 31, 2020, and increased to 0.92 by December 31, 2024. This improvement indicates that the company has been more effective in generating revenue from all its assets, not just fixed assets, over the years.
Overall, the upward trends in both Fixed Asset Turnover and Total Asset Turnover ratios suggest that Patterson-UTI Energy Inc has been improving its asset utilization and efficiency in generating revenue from its assets, which is a positive sign for investors and stakeholders.