Patterson-UTI Energy Inc (PTEN)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,833,470 | 5,963,680 | 7,022,330 | 7,226,190 | 7,420,030 | 7,420,570 | 3,117,200 | 3,092,340 | 3,143,820 | 3,042,000 | 2,959,980 | 2,888,960 | 2,957,850 | 3,017,460 | 3,073,310 | 3,171,840 | 3,299,070 | 3,491,220 | 3,624,800 | 3,870,280 |
| 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 |
| Financial leverage ratio | 1.68 | 1.67 | 1.53 | 1.52 | 1.54 | 1.53 | 1.81 | 1.85 | 1.89 | 1.86 | 1.88 | 1.83 | 1.84 | 1.75 | 1.70 | 1.66 | 1.64 | 1.65 | 1.63 | 1.63 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,833,470K ÷ $3,465,820K
= 1.68
Patterson-UTI Energy Inc's financial leverage ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The financial leverage ratio indicates the degree to which a company is using debt to finance its operations and is calculated by dividing total liabilities by total equity.
The trend in Patterson-UTI Energy Inc's financial leverage ratio has been increasing overall, starting at 1.63 in March 2020 and reaching 1.68 by December 31, 2024. This suggests that the company has been relying more on debt to fund its operations and investments compared to equity financing over the period under consideration.
Noteworthy points in the trend include a significant increase in the financial leverage ratio from September 30, 2021, to December 31, 2021, where the ratio jumped from 1.75 to 1.84. Additionally, there was a sharp decline in the ratio from September 30, 2023, to December 31, 2023, dropping from 1.53 to 1.54. However, the ratio rebounded in the following quarter, indicating fluctuations in the company's debt and equity structure.
Overall, the increasing trend in the financial leverage ratio may indicate a higher level of financial risk for Patterson-UTI Energy Inc as it relies more on debt financing. It is essential for investors and stakeholders to closely monitor this ratio to assess the company's solvency, financial health, and ability to meet its debt obligations in the long term.
Peer comparison
Dec 31, 2024