ProPetro Holding Corp (PUMP)

Days of inventory on hand (DOH)

		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
Inventory turnover		79.03	78.20	71.16	69.98	75.62	81.37	66.14	62.07	200.82	241.99	264.14	377.85	201.48	208.87	242.74	237.60	271.62	505.63	439.37	634.55
DOH	days	4.62	4.67	5.13	5.22	4.83	4.49	5.52	5.88	1.82	1.51	1.38	0.97	1.81	1.75	1.50	1.54	1.34	0.72	0.83	0.58

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 79.03
= 4.62

Days of Inventory on Hand (DOH) is a financial ratio that measures the average number of days a company holds its inventory before selling it. In the case of ProPetro Holding Corp, the DOH has shown fluctuations over the periods analyzed.

From March 31, 2020, to March 31, 2021, the DOH increased steadily from 0.58 days to 1.54 days, indicating that the company was holding its inventory for a longer period. This trend continued through June 30, 2021, reaching 1.50 days. However, there was a slight decrease in DOH by September 30, 2021, followed by an increase to 1.81 days by December 31, 2021.

From March 31, 2022, to June 30, 2024, the DOH remained relatively stable, fluctuating within the range of 0.97 to 5.22 days. This suggests potential challenges in inventory management efficiency during these periods. Notably, there was a significant spike in DOH to 5.88 days by March 31, 2023, before showing a slight decline in the following periods.

Overall, the DOH analysis highlights the importance of monitoring inventory levels and turnover to ensure optimal operational efficiency and working capital management for ProPetro Holding Corp.