Patterson-UTI Energy Inc (PTEN)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.26 | 0.26 | 0.21 | 0.20 | 0.20 | 0.20 | 0.32 | 0.33 | 0.33 | 0.34 | 0.36 | 0.35 | 0.35 | 0.34 | 0.33 | 0.32 | 0.31 | 0.31 | 0.30 | 0.29 |
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 shown a gradual increasing trend from 0.29 as of March 31, 2020, to 0.26 as of December 31, 2024. This ratio measures the proportion of the company's total debt relative to its total capital, which includes both debt and equity. The increasing trend indicates a rising reliance on debt financing compared to equity financing over the analyzed period.
The ratio peaked at 0.36 as of June 30, 2022, which could signal a higher level of indebtedness during that period. However, it decreased thereafter, reaching 0.20 as of March 31, 2024, before slightly increasing to 0.26 by December 31, 2024. The significant drop from September 30, 2023, to March 31, 2024, could suggest a strategic shift towards deleveraging or a reduction in debt levels, which could positively impact the company's financial health.
Overall, the trend in Patterson-UTI Energy Inc's debt-to-capital ratio indicates fluctuations in the company's capital structure over time, with a general pattern of modest increases followed by occasional decreases. It is essential for stakeholders to monitor this ratio to assess the company's leverage and financial risk profile continually.
Peer comparison
Dec 31, 2024