ProPetro Holding Corp (PUMP)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,625,190	1,278,100	876,900	786,849	2,045,170
Property, plant and equipment	US$ in thousands	967,116	922,735	808,494	880,477	1,047,540
Fixed asset turnover		1.68	1.39	1.08	0.89	1.95

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,625,190K ÷ $967,116K
= 1.68

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher ratio indicates that the company is generating more revenue per dollar of fixed assets.

Analyzing the trend of ProPetro Holding Corp's fixed asset turnover ratio over the past five years, we observe fluctuations. The ratio increased from 0.89 in 2020 to 1.08 in 2021, indicating an improvement in the company's efficiency in generating revenue from its fixed assets. However, in 2022, the ratio decreased to 1.39, suggesting a potential decline in asset efficiency compared to the previous year.

The most recent data for 2023 shows a further increase in the fixed asset turnover ratio to 1.68, which indicates that the company has improved its efficiency in utilizing fixed assets to generate revenue compared to the previous year.

Overall, the trend in ProPetro Holding Corp's fixed asset turnover ratio shows variability over the years, with fluctuations in efficiency in utilizing fixed assets to generate revenue. It is essential for the company to continue monitoring and managing its fixed asset turnover to ensure optimal utilization of assets and sustained revenue generation.