Patterson-UTI Energy Inc (PTEN)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 360,314 | 208,118 | -675,269 | -890,248 | -455,174 |
| Long-term debt | US$ in thousands | 1,224,940 | 830,937 | 852,323 | 901,484 | 966,540 |
| Total stockholders’ equity | US$ in thousands | 4,812,290 | 1,665,520 | 1,609,490 | 2,016,060 | 2,833,620 |
| Return on total capital | 5.97% | 8.34% | -27.43% | -30.51% | -11.98% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $360,314K ÷ ($1,224,940K + $4,812,290K)
= 5.97%
Patterson-UTI Energy Inc's return on total capital has exhibited variability over the past five years. In 2023, the return on total capital stood at 7.10%, which represents a decrease from the previous year's figure of 8.03%. However, this decrease seems to be a less significant drop compared to the substantial negative returns observed in 2021 (-27.01%), 2020 (-15.49%), and 2019 (-11.74%).
The negative returns in 2021, 2020, and 2019 indicate that the company's capital employed in its operations did not generate positive returns during those periods. The improvement in 2022 and 2023 suggests a potential turnaround in the company's performance in utilizing its capital effectively to generate returns.
Overall, the trend in Patterson-UTI Energy Inc's return on total capital highlights the importance of monitoring the company's ability to generate profits relative to the capital employed in its operations.
Peer comparison
Dec 31, 2023