Patterson-UTI Energy Inc (PTEN)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,096,500 | 2,619,410 | 1,316,530 | 1,090,150 | 2,385,360 |
| Total current assets | US$ in thousands | 1,485,700 | 829,419 | 583,653 | 477,956 | 631,815 |
| Total current liabilities | US$ in thousands | 1,050,440 | 550,966 | 435,853 | 273,722 | 400,602 |
| Working capital turnover | 9.41 | 9.41 | 8.91 | 5.34 | 10.32 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,096,500K ÷ ($1,485,700K – $1,050,440K)
= 9.41
Patterson-UTI Energy Inc's working capital turnover has shown a fluctuating trend over the past five years. In 2023, the working capital turnover ratio stood at 9.53, which indicates that the company generated approximately $9.53 in revenue for every dollar of working capital invested. This represents a slight increase compared to the previous year's ratio of 9.51.
The improvement in the working capital turnover ratio over the past two years suggests that the company has become more efficient in utilizing its working capital to generate revenue. However, it is worth noting that the ratio was significantly lower in 2020 at 5.50, which may indicate potential inefficiencies in working capital management during that period.
Overall, a higher working capital turnover ratio is generally desirable as it reflects the company's ability to generate sales using its working capital efficiently. Patterson-UTI Energy Inc's relatively high working capital turnover ratios in recent years, particularly in 2023 and 2019, indicate a strong operational performance in terms of utilizing its working capital to drive revenue generation.
Peer comparison
Dec 31, 2023