ProPetro Holding Corp (PUMP)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,429,340	1,180,140	879,364	863,739	256,985
Inventory	US$ in thousands	17,705	5,034	3,949	2,729	2,436
Inventory turnover		80.73	234.43	222.68	316.50	105.49

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,429,340K ÷ $17,705K
= 80.73

ProPetro Holding Corp's inventory turnover ratio has shown volatility over the past five years. The ratio decreased from 316.50 in 2020 to 80.73 in 2023. This significant drop may indicate potential inefficiencies in managing inventory levels or challenges in selling goods. However, it is important to note that the inventory turnover ratio alone may not provide a complete picture and should be analyzed in conjunction with other financial metrics to understand the company's operational efficiency and performance. Further investigation into the reasons behind the fluctuations in the inventory turnover ratio is recommended to assess ProPetro Holding Corp's inventory management practices and overall business operations.