Patterson-UTI Energy Inc (PTEN)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,219,770 | 1,224,940 | 830,937 | 852,323 | 901,484 |
| Total stockholders’ equity | US$ in thousands | 3,465,820 | 4,812,290 | 1,665,520 | 1,609,490 | 2,016,060 |
| Debt-to-capital ratio | 0.26 | 0.20 | 0.33 | 0.35 | 0.31 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,219,770K ÷ ($1,219,770K + $3,465,820K)
= 0.26
The debt-to-capital ratio of Patterson-UTI Energy Inc has fluctuated over the past five years. It was 0.31 as of December 31, 2020, indicating that 31% of the company's capital was funded by debt. Subsequently, it increased to 0.35 by December 31, 2021, suggesting a higher reliance on debt for capital funding.
However, the ratio decreased to 0.33 by December 31, 2022, before experiencing a significant drop to 0.20 by December 31, 2023. This substantial decrease may indicate a reduction in debt relative to the company's capital base, potentially reflecting enhanced financial stability or improved operational performance.
By the end of December 31, 2024, the debt-to-capital ratio had slightly increased to 0.26, still below the levels seen in the prior years. Overall, fluctuations in the debt-to-capital ratio suggest changes in the company's capital structure and leverage positions, highlighting the importance of monitoring financial ratios for assessing risk and financial health.
Peer comparison
Dec 31, 2024