TechTarget, Inc. Common Stock (TTGT)
Solvency ratios
| Jun 30, 2025 | Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 1.43 | 1.44 | 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 |
The analysis of TechTarget, Inc.’s solvency ratios over the period from June 2020 through March 2025 indicates a consistent pattern of minimal or nonexistent leverage involving debt obligations. Specifically, the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio are all reported as 0.00 throughout this entire timeframe. These ratios suggest that the company has not utilized debt financing, either in terms of assets financed through debt, the proportion of capital derived from debt sources, or the ratio of debt to shareholders' equity.
This persistent absence of debt in the capital structure reflects a very conservative approach to leverage, implying that the company relies entirely on equity financing to support its operations. The zero debt ratios indicate zero financial leverage from debt, thereby eliminating debt-related financial risk but also potentially limiting leverage-driven growth opportunities.
Despite the lack of debt, the financial leverage ratio exhibits notable fluctuation. It starts at approximately 1.45 in June 2020 and demonstrates a general increasing trend reaching around 3.56 by March 2023 before gradually declining back toward approximately 1.43 by June 2025. This ratio, calculated as the ratio of total assets to total equity, implies that at times the company’s assets are roughly 1.4 times its equity, maintaining a level close to or slightly above 1.4 to 3.5 during most of the period. The high ratios suggest that, at certain points, assets are financed through mechanisms other than debt, such as retained earnings or equity contributions, aligning with the zero debt ratios observed.
Overall, these financial ratios provide a clear picture of a firm that has operated without leverage throughout the period. The zero debt ratios combined with the fluctuating financial leverage ratio suggest a capital structure heavily reliant on equity, with no recent or ongoing use of debt financing. This approach minimizes solvency risk but may also influence the company's capacity for growth and investment through leveraged means.
Coverage ratios
| Jun 30, 2025 | Mar 31, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 0.16 | -0.45 | -0.82 | -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 |
The interest coverage ratios for TechTarget, Inc. over the specified periods reveal significant fluctuations, reflecting variations in the company's ability to meet its interest obligations through earnings before interest and taxes (EBIT).
From June 30, 2020, through September 30, 2021, the interest coverage ratios remained relatively high and stable, ranging from approximately 12.94 to 32.89. This indicates a strong capacity to service interest expenses during this period, with the ratios suggesting that EBIT was substantially higher than interest costs.
However, a notable decline occurred starting at December 31, 2021, when the ratio dropped sharply to 1.48. This reduction signals a significant deterioration in earnings relative to interest expenses, approaching a level where EBIT barely covers interest obligations. Despite a slight increase to 1.81 and then 2.07 in subsequent quarters, the ratios remained comparatively modest through mid-2022, indicating ongoing challenges in generating sufficient earnings to comfortably cover interest.
The ratio peaked again at 39.51 on December 31, 2022, representing a period of strong earnings relative to interest expenses, before declining to 13.56 in March 2023 and further decreasing to 5.69 in June 2023. This downward trend suggests a gradual weakening in profitability or increased interest expenses, reducing the company's coverage capacity.
From September 2023 onward, the interest coverage ratio fell below 2, reaching 1.70, and subsequently turning negative in December 2023 and beyond. Negative ratios indicate that the company’s EBIT was insufficient to cover interest expenses, implying that the company's earnings were not only inadequate to meet interest obligations but potentially indicative of losses, financial distress, or extraordinary circumstances affecting profitability.
In summary, the interest coverage ratio of TechTarget, Inc. demonstrates periods of strong financial health in terms of interest servicing capacity, notably prior to late 2021 and at the end of 2022. However, recent trends have shown a decline, culminating in negative figures in late 2023 and into 2024, which raises concerns regarding the company's ability to sustain its interest obligations without additional earnings growth or restructuring.