TechTarget Inc (TTGT)

Debt-to-equity 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-equity ratio		0.00	0.00	0.00	0.76	0.15

December 31, 2023 calculation

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

The debt-to-equity ratio for Techtarget Inc. has shown some fluctuations over the past five years. In 2019, the ratio was relatively low at 0.16, indicating a conservative capital structure with a lower reliance on debt financing compared to equity. However, there was a significant increase in the ratio in 2020 to 0.76, suggesting a moderate increase in debt relative to equity.

From 2021 onwards, the debt-to-equity ratio climbed steadily, reaching 2.03 in 2021, 2.10 in 2022, and 1.84 in 2023. These ratios indicate a higher level of debt utilization compared to equity in the company's capital structure. The increasing trend in the ratio implies that Techtarget Inc. has been taking on more debt relative to equity in recent years.

Overall, the rising debt-to-equity ratio suggests that Techtarget Inc. may be becoming more leveraged over time, potentially increasing financial risk as the company relies more on debt to finance its operations and growth initiatives. Monitoring this ratio, along with other financial metrics, is essential to assess the company's ability to manage its debt levels effectively and sustain its financial health in the long run.