Patterson-UTI Energy Inc (PTEN)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 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 | 966,540 | 969,909 | 1,119,650 | 1,119,430 |
| Total assets | US$ in thousands | 7,420,030 | 7,420,570 | 3,117,200 | 3,092,340 | 3,143,820 | 3,042,000 | 2,959,980 | 2,888,960 | 2,957,850 | 3,017,460 | 3,073,310 | 3,171,840 | 3,299,070 | 3,491,220 | 3,624,800 | 3,870,280 | 4,439,620 | 4,609,090 | 5,191,780 | 5,367,750 |
| Debt-to-assets ratio | 0.17 | 0.17 | 0.26 | 0.27 | 0.26 | 0.28 | 0.30 | 0.30 | 0.29 | 0.30 | 0.29 | 0.28 | 0.27 | 0.28 | 0.27 | 0.25 | 0.22 | 0.21 | 0.22 | 0.21 |
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 of Patterson-UTI Energy Inc has shown a decreasing trend over the past eight quarters, indicating a favorable position in terms of debt management. The ratio declined from 0.30 in Q1 2022 to 0.17 in Q4 2023. This suggests that the company has been successful in reducing its debt relative to its total assets over this period.
A lower debt-to-assets ratio generally indicates that a company has a lower level of financial risk and is less reliant on debt to finance its operations. It reflects a stronger financial position and a higher ability to cover its debts using its assets.
It is worth noting that the ratio increased slightly in Q2 and Q3 2023 compared to the previous quarters, but overall the downward trend is positive. This improvement in debt management may enhance the company's financial stability and reduce its vulnerability to economic downturns or fluctuations in interest rates.
Overall, the decreasing trend in Patterson-UTI Energy Inc's debt-to-assets ratio signals a strengthening financial position and effective debt management strategy over the past eight quarters.
Peer comparison
Dec 31, 2023