Patterson-UTI Energy Inc (PTEN)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 4,812,290 | 1,665,520 | 1,609,490 | 2,016,060 | 2,833,620 |
| Debt-to-capital ratio | 0.20 | 0.33 | 0.35 | 0.31 | 0.25 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,224,940K ÷ ($1,224,940K + $4,812,290K)
= 0.20
Patterson-UTI Energy Inc's debt-to-capital ratio has shown a fluctuating trend over the past five years. The ratio decreased from 0.35 in 2021 to 0.21 in 2023, indicating a reduction in the proportion of debt relative to the company's total capital structure. This downward trend suggests that the company has been able to effectively manage its debt levels or increase its capital base during this period.
It is important to note that a lower debt-to-capital ratio generally indicates lower financial risk as it implies a lower reliance on debt financing. A decreasing trend in this ratio can reflect positively on a company's financial health, as it may indicate improved financial stability and a stronger balance sheet. However, it is essential to consider the reasons behind this decline and assess whether it is sustainable and aligns with the company's long-term financial strategy.
Peer comparison
Dec 31, 2023