Patterson-UTI Energy Inc (PTEN)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,224,940 | 830,937 | 852,323 | 901,484 | 966,540 |
| Total assets | US$ in thousands | 7,420,030 | 3,143,820 | 2,957,850 | 3,299,070 | 4,439,620 |
| Debt-to-assets ratio | 0.17 | 0.26 | 0.29 | 0.27 | 0.22 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,224,940K ÷ $7,420,030K
= 0.17
The debt-to-assets ratio for Patterson-UTI Energy Inc has shown a declining trend over the past five years. In 2023, the ratio decreased to 0.17 from 0.26 in 2022, indicating that the company relied less on debt financing to support its operations and investments relative to its total assets. This reduction in the debt-to-assets ratio suggests improved financial stability and a stronger balance sheet position.
Comparing the 2023 ratio of 0.17 to historical data, it is noteworthy that the company's leverage position is at its lowest level over the past five years, demonstrating a more conservative debt management approach. This lower ratio implies a lower financial risk and potentially better financial health for Patterson-UTI Energy Inc.
Overall, the decreasing trend in the debt-to-assets ratio signifies a positive development for the company, as it indicates a prudent debt management strategy and a strengthening financial position over the years.
Peer comparison
Dec 31, 2023