ProPetro Holding Corp (PUMP)

Payables 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
Payables	US$ in thousands	161,441	234,299	152,649	79,153	193,096
Payables turnover		8.85	5.04	5.76	10.91	1.33

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,429,340K ÷ $161,441K
= 8.85

The payables turnover ratio for ProPetro Holding Corp has fluctuated over the past five years. The ratio indicates how efficiently the company is managing its accounts payables by measuring how many times a company pays off its average accounts payable balance during a specific period.

- In 2023, the payables turnover ratio was 8.85, showing an improvement from the previous year. This signifies that ProPetro Holding Corp was able to pay off its accounts payables almost nine times during the year.
- In 2022, the ratio was 5.04, indicating a lower turnover compared to 2023. This suggests that the company took more time to pay off its accounts payables in 2022.
- In 2021, the payables turnover ratio was 5.76, slightly higher than in 2022 but lower than in 2023.
- In 2020, there was a significant increase in the payables turnover ratio to 10.91, indicating that ProPetro Holding Corp significantly improved its efficiency in paying off its accounts payables during this year.
- In 2019, the ratio was 1.33, reflecting a low turnover compared to subsequent years.

Overall, the trend in the payables turnover ratio shows some variability, with improvements in certain years and fluctuations in efficiency in managing accounts payables. It is essential for the company to maintain a balance between paying off its obligations promptly and effectively managing its cash flow to ensure financial stability and liquidity.