Patterson-UTI Energy Inc (PTEN)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.41 | 1.37 | 1.76 | 1.60 | 1.51 | 1.55 | 1.39 | 1.35 | 1.34 | 1.60 | 1.73 | 1.79 | 1.75 | 2.02 | 1.90 | 1.65 | 1.58 | 1.54 | 1.91 | 1.81 |
| Quick ratio | 1.13 | 1.36 | 1.44 | 1.34 | 1.28 | 1.28 | 1.10 | 1.08 | 1.09 | 1.34 | 1.41 | 1.45 | 1.42 | 1.67 | 1.52 | 1.35 | 1.30 | 1.33 | 1.62 | 1.57 |
| Cash ratio | 0.18 | 0.35 | 0.33 | 0.32 | 0.25 | 0.09 | 0.04 | 0.12 | 0.27 | 0.56 | 0.74 | 0.79 | 0.82 | 1.15 | 0.91 | 0.43 | 0.43 | 0.38 | 0.54 | 0.49 |
Patterson-UTI Energy Inc's liquidity ratios provide insight into its ability to meet short-term obligations and cover immediate cash needs. Looking at the current ratio, which indicates the company's ability to pay off its current liabilities with its current assets, there has been some fluctuation over the past eight quarters, ranging from 1.35 to 1.76. On average, the current ratio has been above 1, suggesting that Patterson-UTI Energy Inc generally has enough current assets to cover its current liabilities.
The quick ratio, a more stringent measure of liquidity as it excludes inventories from current assets, also shows fluctuations over the quarters, ranging from 1.19 to 1.61. On average, the quick ratio has been above 1, indicating that the company can meet its short-term obligations without relying on selling off inventories.
Lastly, the cash ratio, which provides the most conservative measure of liquidity by considering only cash and equivalents in relation to current liabilities, has shown variability between 0.20 and 0.51. This indicates that Patterson-UTI Energy Inc's ability to cover its short-term liabilities solely with cash on hand has ranged from relatively low to moderate levels.
In conclusion, based on the current, quick, and cash ratios, Patterson-UTI Energy Inc generally maintains a reasonable level of liquidity to meet its short-term financial obligations. However, stakeholders should closely monitor these ratios for any sustained downward trends that could raise concerns about the company's liquidity position.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -320.60 | -499.68 | -417.99 | -560.43 | -443.24 | -417.44 | -400.67 | -307.93 | -272.51 | -325.57 | -194.88 | -131.57 | 14.63 | 8.27 | 9.97 | -13.20 | -233.38 | -108.90 | -114.52 | -132.61 |
The cash conversion cycle for Patterson-UTI Energy Inc has shown fluctuations over the past eight quarters. The company's cash conversion cycle represents the number of days it takes to convert its investments in inventory and other resources into cash from sales.
In Q4 2023, the cash conversion cycle was 41.24 days, which was slightly lower compared to the previous quarter (Q3 2023) at 45.72 days. This indicates that the company was able to manage its cash flow and convert its resources into cash more efficiently in Q4 2023.
Looking back further, in Q2 2023, the cash conversion cycle was 26.90 days, the lowest among the reported quarters, suggesting that the company was able to streamline its operations and convert its investments into cash more rapidly during that period.
On the other hand, in Q1 2023, the cash conversion cycle increased to 22.29 days from the previous quarter, which may indicate delays in converting resources into cash or inefficiencies in the company's operating cycle during that period.
Overall, analyzing the trend of the cash conversion cycle over the reported quarters can provide insights into Patterson-UTI Energy Inc's ability to manage its working capital efficiently and optimize cash flow from its operations.