Patterson-UTI Energy Inc (PTEN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 239,182 | 190,108 | 137,553 | 117,524 | 224,915 |
| Short-term investments | US$ in thousands | 2,111 | 2,572 | — | — | — |
| Total current liabilities | US$ in thousands | 841,993 | 1,050,440 | 550,966 | 435,853 | 273,722 |
| Cash ratio | 0.29 | 0.18 | 0.25 | 0.27 | 0.82 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($239,182K
+ $2,111K)
÷ $841,993K
= 0.29
The cash ratio of Patterson-UTI Energy Inc has experienced fluctuations over the past five years. As of December 31, 2020, the company had a cash ratio of 0.82, indicating that it had sufficient cash on hand to cover 82% of its current liabilities. However, by the end of 2021, the cash ratio had decreased to 0.27, suggesting a significant decrease in the company's ability to meet its short-term obligations with cash alone.
Continuing into 2022 and 2023, the cash ratio further declined to 0.25 and 0.18 respectively, indicating a trend of decreasing liquidity and potentially raising concerns about the company's ability to manage its short-term financial obligations using its available cash reserves.
Interestingly, by the end of 2024, the cash ratio showed a slight improvement, rising to 0.29. This improvement may signal a positive shift in the company's liquidity position, although the ratio still remains below the initial level in 2020.
Overall, the decreasing trend in Patterson-UTI Energy Inc's cash ratio over the years highlights a potential liquidity challenge that the company may be facing. Investors and stakeholders should monitor this trend closely, as a low cash ratio could signal financial difficulties and the need for the company to explore alternative sources of liquidity to ensure its financial health.
Peer comparison
Dec 31, 2024