Patterson-UTI Energy Inc (PTEN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 192,680 | 137,553 | 117,524 | 224,915 | 174,185 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,050,440 | 550,966 | 435,853 | 273,722 | 400,602 |
| Cash ratio | 0.18 | 0.25 | 0.27 | 0.82 | 0.43 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($192,680K
+ $—K)
÷ $1,050,440K
= 0.18
The cash ratio for Patterson-UTI Energy Inc has shown a decreasing trend over the five-year period from 2019 to 2023. The ratio was at its highest in 2020 at 1.02, indicating that the company had $1.02 of cash and cash equivalents for every dollar of current liabilities. However, there has been a significant decline in the cash ratio since then, reaching 0.29 in 2023.
A cash ratio of 0.29 in 2023 suggests that the company had $0.29 of cash and cash equivalents for every dollar of current liabilities, indicating a lower level of liquidity compared to previous years. This could be a cause for concern as a lower cash ratio may indicate a reduced ability to cover short-term liabilities.
It is important for stakeholders to closely monitor Patterson-UTI Energy Inc's liquidity position and assess the reasons behind the declining trend in the cash ratio. Management may need to evaluate their cash management strategies and liquidity reserves to ensure the company remains capable of meeting its short-term financial obligations.
Peer comparison
Dec 31, 2023