TechTarget, Inc. Common Stock (TTGT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
TechTarget, Inc. Common Stock has maintained a strong solvency position, as indicated by its consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios. These ratios have remained at 0.00 across all reported periods, suggesting that the company has not relied heavily on debt to finance its operations or investments.
The financial leverage ratio, which measures the extent to which the company relies on debt in its capital structure, shows some variability over the periods under review. The ratio increased from 1.45 in December 2019 to a peak of 3.61 in June 2023 before gradually decreasing to 2.94 by September 2024. This indicates that the company's financial leverage has fluctuated but remained within a manageable range.
Overall, the solvency ratios reflect a conservative approach to financing on the part of TechTarget, Inc. Common Stock, with a minimal reliance on debt and a relatively stable financial leverage position, which bodes well for the company's long-term financial stability and ability to meet its obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -0.74 | -0.69 | -0.89 | -0.27 | 1.70 | 5.69 | 13.56 | 39.51 | 2.57 | 2.07 | 1.81 | 1.48 | 12.94 | 13.30 | 14.10 | 16.71 | 32.89 | 22.83 | 17.72 | 25.07 |
TechTarget, Inc. Common Stock's interest coverage ratio has fluctuated significantly over the reported periods. As of December 31, 2019, the interest coverage ratio was robust at 25.07, indicating the company's ability to meet its interest obligations comfortably. However, this ratio declined in the following quarters, with a notable decrease by March 31, 2021, standing at 14.10, and further deteriorating to 1.48 by December 31, 2021. Such a sharp decrease raises concerns about the company's ability to cover its interest expenses adequately.
Subsequently, there was a slight improvement in the interest coverage ratio by December 31, 2022, soaring to 39.51. This sudden increase could be attributed to several factors including improvements in profitability or a decrease in interest expenses. However, the ratio dropped again in the following periods, hitting a negative range by September 30, 2024.
Such negative interest coverage ratios are alarming as they indicate that the company's operating income is insufficient to cover its interest payments, posing a significant financial risk. It suggests that TechTarget, Inc. Common Stock may face challenges in meeting its debt obligations and could potentially indicate financial distress or insolvency if the trend continues. Management should closely monitor and address this trend to ensure the company's financial stability and viability in the long term.