ProPetro Holding Corp (PUMP)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	1,431,277	1,188,582	1,164,654	1,196,440	1,180,112	956,707	951,911	888,632	1,002,128	944,863	949,268	959,000	863,739	278,345	284,272	287,139	256,984	221,248	192,075	164,158
Inventory	US$ in thousands	17,705	15,887	18,159	17,732	5,034	3,944	3,491	2,297	3,949	3,477	2,641	2,329	2,729	1,849	2,805	3,296	2,436	1,850	4,948	5,870
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

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,431,277K ÷ $17,705K
= 80.84

The inventory turnover of ProPetro Holding Corp has shown significant fluctuations over the past few periods. From Dec 31, 2019 to Dec 31, 2023, the inventory turnover ranged from a low of 27.97 to a high of 411.76. The trend indicates that the company's efficiency in managing its inventory has been volatile, with periods of high turnover followed by lower turnover rates.

A high inventory turnover ratio, such as 411.76 on Mar 31, 2021, suggests that the company is selling its inventory quickly, which can be a positive indicator of efficient inventory management and strong sales. On the other hand, a low ratio, such as 27.97 on Sep 30, 2019, may indicate slow inventory movement, potentially leading to excess or obsolete inventory.

Overall, it is important for ProPetro Holding Corp to monitor its inventory turnover consistently and work towards maintaining a balance to ensure optimal utilization of resources and profitability.