TechTarget, Inc. Common Stock (TTGT)
Financial leverage ratio
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 732,970 | 717,148 | 706,157 | 699,888 | 687,600 | 730,617 | 746,802 | 764,717 | 779 | 799,711 | 799,164 | 789,000 | 509,354 | 482,218 | 464,372 | 456,568 | 231,207 | 223,260 | 211,490 | 221,608 |
| Total stockholders’ equity | US$ in thousands | 249,476 | 236,810 | 223,494 | 222,927 | 209,008 | 202,297 | 210,022 | 217,474 | 230 | 238,402 | 241,196 | 222,757 | 208,521 | 193,832 | 182,138 | 202,506 | 162,256 | 153,546 | 145,375 | 152,951 |
| Financial leverage ratio | 2.94 | 3.03 | 3.16 | 3.14 | 3.29 | 3.61 | 3.56 | 3.52 | 3.39 | 3.35 | 3.31 | 3.54 | 2.44 | 2.49 | 2.55 | 2.25 | 1.42 | 1.45 | 1.45 | 1.45 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $732,970K ÷ $249,476K
= 2.94
The financial leverage ratio of TechTarget, Inc. Common Stock has shown a notable increase over the years, indicating a rising level of financial leverage in the company's capital structure. The ratio stood at 1.45 as of December 31, 2019, remaining stable at the same level in the subsequent quarters of March 31, 2020, and June 30, 2020. However, there was a slight decrease to 1.42 by September 30, 2020.
A significant spike in the financial leverage ratio was observed by the end of December 31, 2020, reaching 2.25 and continuing to rise consistently. This upward trend continued through the first quarter of 2021, with the ratio reaching 2.55. The trend persisted with slight fluctuations in the following quarters, indicating a higher proportion of debt in the company's capital structure compared to equity.
By the end of December 31, 2023, the financial leverage ratio had risen to 3.14, suggesting the company was increasingly reliant on debt financing. The ratio peaked at 3.61 as of June 30, 2023, before experiencing a slight decrease in the subsequent periods.
As of September 30, 2024, the financial leverage ratio stood at 2.94, still indicating a high level of financial leverage within the company. Overall, the increasing trend in the financial leverage ratio of TechTarget, Inc. Common Stock highlights a growing reliance on debt to finance its operations and investments, which may pose higher financial risks but could also signify potential growth opportunities if managed effectively.
Peer comparison
Sep 30, 2024