Patterson-UTI Energy Inc (PTEN)

Solvency ratios

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
Debt-to-assets ratio 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 0.22 0.21 0.22 0.21
Debt-to-capital ratio 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 0.25 0.25 0.25 0.25
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
Financial leverage ratio 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 1.57 1.57 1.58 1.58

Patterson-UTI Energy Inc's solvency ratios demonstrate its ability to meet its long-term financial obligations and manage debt levels effectively. The debt-to-assets ratio has remained relatively stable around 0.25, indicating that the company finances a lower proportion of its assets through debt. This suggests solid asset coverage for creditors.

The debt-to-capital and debt-to-equity ratios show a similar trend, with gradual increases observed over the quarters. Patterson-UTI Energy's debt is largely financed by a combination of equity and capital, which aligns with industry norms.

The financial leverage ratio, which measures the extent of financial leverage used by the company, has fluctuated slightly between 1.5 and 1.9. While the ratio has shown some variability, it is generally within an acceptable range, indicating the company's ability to generate returns on its equity capital.

Overall, Patterson-UTI Energy Inc's solvency ratios reflect a prudent approach to managing debt and maintaining a healthy balance sheet, with a focus on sustaining financial stability over time.

Coverage ratios

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
Interest coverage 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 -6.05 -9.74 -6.93 -6.23

Patterson-UTI Energy Inc's interest coverage ratio has exhibited fluctuations over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt with its earnings before interest and taxes (EBIT).

In the most recent quarter of Q4 2023, Patterson-UTI Energy Inc's interest coverage ratio stood at 9.28, indicating that the company generated earnings 9.28 times greater than its interest expenses. This suggests a healthy ability to cover interest payments.

Looking at the trend, the interest coverage ratio has generally been above 5 in the past quarters, showing a consistent ability to cover interest expenses comfortably. Notably, there was a significant improvement in interest coverage from negative values in Q3 2022 and Q2 2022 to positive values in subsequent quarters.

It is worth noting that the interest coverage ratio reached its lowest point in Q1 2022 at -13.34, indicating that the company's earnings were insufficient to cover its interest payments during that period. However, Patterson-UTI Energy Inc managed to improve its financial position significantly since then, with interest coverage ratios rising above 5 consistently.

Overall, the improving trend in Patterson-UTI Energy Inc's interest coverage ratios suggests a strengthening ability to meet its interest obligations, reflecting positively on the company's financial health and solvency.