Cactus Inc (WHD)
Financial leverage ratio
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,739,330 | 1,681,720 | 1,626,390 | 1,575,890 | 1,522,560 | 1,464,150 | 1,476,400 | 1,520,270 | 1,118,900 | 1,095,200 | 1,070,120 | 1,026,190 | 982,078 | 963,930 | 944,750 | 877,865 | 815,594 | 811,488 | 822,152 | 850,095 |
| Total stockholders’ equity | US$ in thousands | 1,264,180 | 1,003,020 | 954,676 | 893,366 | 865,522 | 1,010,070 | 952,774 | 925,836 | 710,445 | 544,239 | 517,239 | 492,323 | 595,033 | 579,700 | 441,970 | 559,050 | 550,770 | 546,560 | 547,907 | 542,426 |
| Financial leverage ratio | 1.38 | 1.68 | 1.70 | 1.76 | 1.76 | 1.45 | 1.55 | 1.64 | 1.57 | 2.01 | 2.07 | 2.08 | 1.65 | 1.66 | 2.14 | 1.57 | 1.48 | 1.48 | 1.50 | 1.57 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,739,330K ÷ $1,264,180K
= 1.38
The financial leverage ratio of Cactus Inc has exhibited fluctuations over the past few years, ranging from a low of 1.38 to a high of 2.14. The ratio measures the extent to which the company relies on debt financing as opposed to equity. A higher ratio signifies a greater reliance on debt, which can amplify returns but also increase financial risk.
During the period under review, Cactus Inc experienced an increase in leverage from March 31, 2021, to June 30, 2021, where the ratio surged to 2.14, indicating a significant rise in debt relative to equity. However, the company managed to subsequently reduce its leverage, demonstrating a more balanced mix of debt and equity financing.
Overall, Cactus Inc's financial leverage ratio has shown variability, reflecting the changing capital structure of the company over time. It is important for stakeholders to monitor this ratio to assess the company's risk exposure and financial stability.
Peer comparison
Dec 31, 2024