Patterson-UTI Energy Inc (PTEN)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 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 | 2,833,620 | 2,942,990 | 3,278,310 | 3,403,370 |
| Debt-to-equity ratio | 0.25 | 0.25 | 0.48 | 0.49 | 0.50 | 0.52 | 0.56 | 0.54 | 0.53 | 0.52 | 0.50 | 0.47 | 0.45 | 0.46 | 0.43 | 0.41 | 0.34 | 0.33 | 0.34 | 0.33 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,224,940K ÷ $4,812,290K
= 0.25
Patterson-UTI Energy Inc's debt-to-equity ratio has shown fluctuations over the past eight quarters, ranging from 0.27 to 0.56. A lower debt-to-equity ratio indicates that the company is relying less on debt to finance its operations and growth, which can be viewed positively by investors and lenders as it signifies a lower financial risk.
The decreasing trend from Q1 2022 to Q4 2023 suggests that the company has been gradually reducing its debt relative to its equity over time. This could be a strategic move to strengthen the financial position and reduce the overall financial risk of the company.
Additionally, the debt-to-equity ratio of Patterson-UTI Energy Inc is generally below 1, which indicates that the company's equity financing is greater than its debt financing. This signifies a healthy balance between debt and equity in the company's capital structure, which can boost investor confidence and mitigate the risk of financial distress.
Overall, the fluctuating but generally decreasing trend in the debt-to-equity ratio of Patterson-UTI Energy Inc indicates a positive financial position and prudent financial management by the company.
Peer comparison
Dec 31, 2023