TechTarget Inc (TTGT)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	—	—	—	153,882	22,473
Total stockholders’ equity	US$ in thousands	222,927	217,474	222,757	202,506	152,951
Debt-to-capital ratio		0.00	0.00	0.00	0.43	0.13

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $222,927K)
= 0.00

The debt-to-capital ratio for Techtarget Inc. has fluctuated over the past five years. In 2019, the ratio was relatively low at 0.13, indicating that the company had a lower level of debt in relation to its capital structure. However, in subsequent years, the ratio increased significantly, reaching 0.65 in 2023. This suggests that the company has taken on more debt relative to its total capital.

The increasing trend in the debt-to-capital ratio may indicate that Techtarget Inc. has been relying more on debt financing to support its operations or growth initiatives. While taking on debt can provide a company with funds for investments, expansion, or other strategic activities, a high debt-to-capital ratio can also signal increased financial risk and vulnerability to economic downturns or changes in interest rates.

It is essential for investors and stakeholders to closely monitor changes in the debt-to-capital ratio over time, as it can provide insights into the company's financial leverage and risk management strategies. Additionally, analyzing this ratio in conjunction with other financial metrics can offer a more holistic view of Techtarget Inc.'s overall financial health and performance.