Patterson-UTI Energy Inc (PTEN)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -887,169 | -743,871 | 258,303 | 321,192 | 360,314 | 364,800 | 427,884 | 354,091 | 208,118 | -267,690 | -432,277 | -575,179 | -675,269 | -440,009 | -463,867 | -513,954 | -890,248 | -847,319 | -1,038,996 | -926,608 |
| Long-term debt | US$ in thousands | 1,219,770 | 1,219,460 | 1,219,160 | 1,221,060 | 1,224,940 | 1,228,210 | 822,408 | 822,196 | 830,937 | 852,949 | 877,739 | 852,530 | 852,323 | 902,104 | 901,896 | 901,689 | 901,484 | 967,366 | 967,140 | 966,768 |
| Total stockholders’ equity | US$ in thousands | 3,465,820 | 3,562,130 | 4,599,110 | 4,743,000 | 4,812,290 | 4,851,210 | 1,720,170 | 1,672,960 | 1,665,520 | 1,634,380 | 1,576,080 | 1,576,700 | 1,609,490 | 1,725,640 | 1,807,720 | 1,912,150 | 2,016,060 | 2,119,560 | 2,228,870 | 2,378,890 |
| Return on total capital | -18.93% | -15.56% | 4.44% | 5.39% | 5.97% | 6.00% | 16.83% | 14.19% | 8.34% | -10.76% | -17.62% | -23.68% | -27.43% | -16.74% | -17.12% | -18.27% | -30.51% | -27.45% | -32.51% | -27.70% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-887,169K ÷ ($1,219,770K + $3,465,820K)
= -18.93%
Patterson-UTI Energy Inc's return on total capital has shown a downward trend from March 2020 to December 2022, indicating challenges in effectively utilizing its capital resources to generate returns. The company experienced negative returns during this period, with values ranging from -27.70% to -10.76%.
However, starting from March 2023, there has been a noticeable improvement in the return on total capital, with positive returns recorded. The performance continued to improve modestly through 2024, with return figures ranging between 4.44% and 16.83%.
The recent positive trend in return on total capital suggests that Patterson-UTI Energy Inc may have implemented strategies to enhance its capital efficiency and profitability. Further monitoring and analysis of the company's financial performance will be necessary to assess the sustainability of this positive trajectory.
Peer comparison
Dec 31, 2024