ProPetro Holding Corp (PUMP)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		8.85	5.04	5.76	10.91	1.33
Number of days of payables	days	41.23	72.47	63.36	33.45	274.26

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 8.85
= 41.23

The number of days of payables for ProPetro Holding Corp has displayed fluctuations over the past five years. In 2023, the company's days of payables decreased significantly to 41.23 days compared to the previous year. This indicates that ProPetro is taking fewer days, on average, to pay its suppliers in 2023, which could imply improved liquidity management or more efficient operations in managing its payables.

In 2022, the number of days of payables was significantly higher at 72.47 days, suggesting that the company took longer to settle its payables compared to 2023. The decrease in days payables from 2022 to 2023 could signify a more streamlined approach to managing vendor payments.

In 2021, the days of payables were 63.36 days, showing a moderate decrease from the previous year. This could imply a slight improvement in the company's efficiency in managing its payable obligations.

In 2020, the days of payables were relatively lower at 33.45 days, indicating that ProPetro was able to swiftly settle its payables during that year, possibly due to improved cash flow management or better negotiation with suppliers.

In 2019, the days of payables were significantly higher at 274.26 days, suggesting a substantial increase in the time taken by ProPetro to pay its suppliers. This could indicate potential liquidity issues or challenges in managing working capital efficiently during that period.

Overall, analyzing the trend in ProPetro's number of days of payables over the five-year period provides insights into the company's payment practices and efficiency in managing its accounts payable.