Patterson-UTI Energy Inc (PTEN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.21 | 0.20 | 0.17 | 0.17 | 0.17 | 0.17 | 0.26 | 0.27 | 0.26 | 0.28 | 0.30 | 0.30 | 0.29 | 0.30 | 0.29 | 0.28 | 0.27 | 0.28 | 0.27 | 0.25 |
| 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 |
| Debt-to-equity ratio | 0.35 | 0.34 | 0.27 | 0.26 | 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 |
| 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 |
Patterson-UTI Energy Inc's solvency ratios provide valuable insights into the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio measures the proportion of the company's assets that are financed through debt. Patterson-UTI Energy's debt-to-assets ratio has been relatively stable in recent periods, ranging from 0.25 to 0.30. This indicates that around 25% to 30% of the company's assets are funded by debt.
2. Debt-to-capital ratio: The debt-to-capital ratio reflects the percentage of the company's capital structure that is comprised of debt. Patterson-UTI Energy's debt-to-capital ratio has slightly increased over the periods, fluctuating between 0.29 and 0.36. This signifies that debt represents around 29% to 36% of the company's total capital.
3. Debt-to-equity ratio: The debt-to-equity ratio demonstrates the extent to which the company's operations are funded by debt compared to equity. Patterson-UTI Energy's debt-to-equity ratio has shown a similar trend to the debt-to-capital ratio, hovering in the range of 0.41 to 0.56. This implies that debt finances approximately 41% to 56% of the company's equity.
4. Financial leverage ratio: The financial leverage ratio gauges the company's level of financial leverage, or the amount of debt used in its capital structure. Patterson-UTI Energy's financial leverage ratio has displayed some variation but has generally increased over time, ranging from 1.63 to 1.88. This suggests that the company's financial risk has also increased, as a higher financial leverage ratio indicates a higher proportion of debt in the capital structure.
Overall, while Patterson-UTI Energy Inc has maintained relatively stable debt-to-asset ratios, its debt-to-capital, debt-to-equity, and financial leverage ratios have shown a slight upward trend over the periods, indicating a higher reliance on debt financing. Shareholders and investors may monitor these ratios to assess the company's solvency and financial risk levels.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -12.33 | -10.20 | 3.66 | 5.15 | 6.82 | 8.63 | 11.38 | 9.19 | 5.17 | -6.26 | -10.17 | -13.52 | -16.09 | -11.38 | -11.81 | -12.99 | -21.84 | -13.74 | -14.61 | -12.62 |
Patterson-UTI Energy Inc's interest coverage ratio experienced a significant negative trend from March 31, 2020, to September 30, 2022, indicating that the company had insufficient earnings to cover its interest expenses during this period. This could signal financial distress and potential difficulty in meeting debt obligations.
However, starting from December 31, 2022, the interest coverage ratio saw a reversal in trend, turning positive. This shift suggests an improvement in the company's ability to cover its interest expenses with its earnings.
By December 31, 2024, Patterson-UTI Energy Inc's interest coverage ratio had improved further, reaching -12.33. While still negative, the increasing trend indicates ongoing progress in the company's ability to meet its interest obligations from its operating earnings.
Overall, the company demonstrated a volatile interest coverage ratio in the earlier years of the data period, but through subsequent improvements, it exhibited enhanced financial stability and a strengthening ability to service its debt.