TechTarget, Inc. Common Stock (TTGT)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | — | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | — | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | — | 3.14 | 3.52 | 3.54 | 2.25 |
TechTarget, Inc. Common Stock has consistently demonstrated a strong solvency position across the analyzed years based on the provided solvency ratios. The Debt-to-assets ratio has consistently stood at 0.00, indicating that the company has not relied on debt to finance its assets during this period. This implies that the company's assets are primarily funded through equity rather than debt.
Similarly, the Debt-to-capital ratio has remained stable at 0.00 over the years, reflecting that the company has not utilized debt as part of its capital structure. This suggests a conservative financial approach by relying more on equity financing than debt financing.
The Debt-to-equity ratio has also consistently shown a value of 0.00, indicating that the company's debt levels have been negligible in comparison to its equity levels. This signifies a low level of financial risk associated with the company's capital structure, as the company is not heavily reliant on debt funding.
The Financial leverage ratio, which has shown an increasing trend from 2.25 in 2020 to 3.54 in 2021 and declining thereafter, suggests the company's increasing reliance on debt financing compared to equity during the initial years of analysis. However, as the ratio began to decline from 2022 onwards, it indicates a shift towards a more balanced capital structure where debt plays a lesser role in funding the company's operations.
Overall, the analysis of the solvency ratios indicates that TechTarget, Inc. Common Stock has maintained a conservative and stable solvency position with minimal reliance on debt financing throughout the analyzed period, reflecting a healthy financial position and lower financial risk.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | -0.17 | 66.85 | 1.48 | 71.99 |
Interest coverage ratio is a financial metric used to assess a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses.
In the case of TechTarget, Inc. Common Stock, the interest coverage ratio has fluctuated over the years as follows:
- December 31, 2020: 71.99
- December 31, 2021: 1.48
- December 31, 2022: 66.85
- December 31, 2023: -0.17
- December 31, 2024: Not available
A high interest coverage ratio, such as the one seen on December 31, 2020 (71.99), indicates that the company is generating more than enough earnings to cover its interest expenses, implying a lower risk of default on its debt obligations.
However, a sharp decline in the interest coverage ratio, as observed on December 31, 2021 (1.48) and December 31, 2023 (-0.17), raises concerns about the company's ability to meet its interest payments from its operations.
Investors, creditors, and analysts closely monitor the interest coverage ratio to gauge a company's financial health and its ability to service its debt. It is crucial for TechTarget, Inc. Common Stock to closely monitor this ratio and take necessary steps to improve it if it falls below acceptable levels, in order to maintain financial stability and avoid potential financial distress.