Patterson-UTI Energy Inc (PTEN)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.41 | 1.51 | 1.34 | 1.75 | 1.58 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,485,700K ÷ $1,050,440K
= 1.41
The current ratio of Patterson-UTI Energy Inc has shown some fluctuation over the past five years. As of December 31, 2023, the current ratio stands at 1.41, which indicates that the company's current assets are 1.41 times greater than its current liabilities.
Compared to the previous years, the current ratio has decreased from 1.51 in 2022 to 1.41 in 2023. This decrease suggests that the company's liquidity position has weakened slightly, as it now has slightly fewer current assets relative to its current liabilities.
However, when compared to the ratios in 2021, 2020, and 2019, the current ratio in 2023 is still higher, indicating an improvement in liquidity from those years. It remains above 1, which generally indicates that Patterson-UTI Energy Inc has sufficient current assets to cover its current liabilities.
Overall, while the slight decrease in the current ratio from the previous year may raise some concerns about liquidity, the company still maintains a reasonable level of liquidity as of December 31, 2023. The management should continue to monitor and manage its current assets and liabilities effectively to ensure a healthy liquidity position.
Peer comparison
Dec 31, 2023