ProPetro Holding Corp (PUMP)

Number of days of payables

		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
Payables turnover		8.87	6.11	5.34	4.86	5.04	5.11	5.59	5.86	6.56	5.65	6.96	8.80	10.91	3.89	9.10	1.45	1.33	0.89	0.67	0.60
Number of days of payables	days	41.17	59.75	68.37	75.09	72.47	71.49	65.24	62.30	55.60	64.54	52.43	41.46	33.45	93.86	40.10	252.25	274.26	410.93	541.07	609.27

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 8.87
= 41.17

The number of days of payables for ProPetro Holding Corp has fluctuated over the past few quarters. The trend indicates that the company took longer to pay its suppliers in the earlier periods, with the number of days reaching as high as 609.27 days in March 2019 and 541.07 days in June 2019. This could signal potential liquidity issues or challenges in managing working capital efficiently during that time.

However, there has been a noticeable improvement in the number of days of payables in recent quarters. As of December 2023, the number of days of payables stood at 41.17 days, reflecting a significant decrease from the previous periods. This suggests that the company has been more effective in managing its payments to suppliers, possibly enhancing its cash flow management and overall financial health.

It is essential for investors and stakeholders to track this metric to assess the company's ability to meet its payment obligations, manage working capital effectively, and maintain good relationships with suppliers. Additionally, a decreasing trend in days of payables can indicate operational efficiency and financial stability in the business.