ProPetro Holding Corp (PUMP)

Days of inventory on hand (DOH)

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		80.84	74.81	64.14	67.47	234.43	242.57	272.68	386.87	253.77	271.75	359.44	411.76	316.50	150.54	101.34	87.12	105.49	119.59	38.82	27.97
DOH	days	4.52	4.88	5.69	5.41	1.56	1.50	1.34	0.94	1.44	1.34	1.02	0.89	1.15	2.42	3.60	4.19	3.46	3.05	9.40	13.05

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 80.84
= 4.52

The days of inventory on hand (DOH) for ProPetro Holding Corp has shown fluctuating trends over the past few quarters. The company's inventory management has been relatively stable from Q1 2019 to Q1 2021, with DOH ranging between 0.89 days to 4.19 days. However, from Q2 2021 to Q4 2023, there has been a noticeable increase in the DOH, reaching a high of 5.69 days in Q3 2023.

The rising trend in DOH from Q2 2021 onwards may indicate potential challenges in managing and converting inventory into sales efficiently. Higher DOH values suggest that the company is holding onto inventory for a longer period before selling, which can tie up working capital and increase holding costs.

It is important for ProPetro Holding Corp to closely monitor and improve its inventory management practices to optimize its working capital and liquidity. Analyzing the factors contributing to the increase in DOH and implementing strategies to streamline inventory turnover could help enhance operational efficiency and profitability in the future.