Patterson-UTI Energy Inc (PTEN)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,833,470 | 7,420,030 | 3,143,820 | 2,957,850 | 3,299,070 |
| Total stockholders’ equity | US$ in thousands | 3,465,820 | 4,812,290 | 1,665,520 | 1,609,490 | 2,016,060 |
| Financial leverage ratio | 1.68 | 1.54 | 1.89 | 1.84 | 1.64 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,833,470K ÷ $3,465,820K
= 1.68
The financial leverage ratio of Patterson-UTI Energy Inc has shown variations over the past five years. As of December 31, 2020, the ratio was 1.64, indicating that the company had $1.64 in debt for every $1 of equity. This ratio increased to 1.84 by December 31, 2021, and further to 1.89 by December 31, 2022, suggesting a higher reliance on debt to finance its operations.
However, there was a slight decrease in the financial leverage ratio to 1.54 by December 31, 2023, indicating a reduction in the company's debt relative to its equity. By December 31, 2024, the ratio had increased again to 1.68, reflecting a moderate increase in leverage compared to the previous year.
Overall, the trend in Patterson-UTI Energy Inc's financial leverage ratio shows fluctuations in the company's capital structure and borrowing decisions. It is important to closely monitor this ratio to assess the company's risk profile and financial stability.
Peer comparison
Dec 31, 2024