Patterson-UTI Energy Inc (PTEN)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,420,030 | 3,143,820 | 2,957,850 | 3,299,070 | 4,439,620 |
| Total stockholders’ equity | US$ in thousands | 4,812,290 | 1,665,520 | 1,609,490 | 2,016,060 | 2,833,620 |
| Financial leverage ratio | 1.54 | 1.89 | 1.84 | 1.64 | 1.57 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,420,030K ÷ $4,812,290K
= 1.54
The financial leverage ratio of Patterson-UTI Energy Inc has shown fluctuations over the past five years. The ratio decreased from 1.57 in 2019 to 1.54 in 2020, indicating a slight improvement in the company's leverage position. However, the ratio increased to 1.84 in 2021, peaked at 1.89 in 2022, and then slightly declined to 1.54 in 2023.
These fluctuations suggest that the company has been adjusting its capital structure and debt levels over the years. A higher financial leverage ratio indicates a higher level of debt relative to equity, which may increase the company's financial risk. Conversely, a lower ratio may indicate a more conservative capital structure.
Overall, Patterson-UTI Energy Inc's financial leverage ratio has not shown a consistent trend, and further analysis of the company's debt management strategy and future financial performance is necessary to fully assess the implications of these variations.
Peer comparison
Dec 31, 2023