ProPetro Holding Corp (PUMP)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 6.89 | 6.45 | 6.34 | 5.07 | 6.19 | 5.51 | 5.93 | 5.70 | 6.74 | 5.16 | 4.72 | 4.91 | 9.11 | 11.07 | 22.18 | 8.44 | 9.55 | 7.32 | 5.14 | 5.15 |
| 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 |
| Working capital turnover | 41.16 | 22.06 | 22.46 | 22.91 | 29.97 | 24.97 | 16.52 | 12.47 | 11.17 | 15.16 | 10.82 | 11.28 | 12.07 | 17.23 | 27.67 | 12.34 | 14.21 | 18.59 | 20.54 | 12.52 |
ProPetro Holding Corp's activity ratios provide insights into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.
1. Inventory Turnover: Over the last few quarters, there seems to have been a declining trend in the inventory turnover ratio, which indicates that the company is selling its inventory at a slower pace. However, the ratio experienced a significant spike in Dec 2022 and Sep 2022, suggesting a sudden increase in sales efficiency during those periods.
2. Receivables Turnover: The receivables turnover ratio has been relatively stable over the quarters. A higher turnover ratio signifies that the company is collecting its receivables more frequently, indicating effective credit control and management of accounts receivable.
3. Payables Turnover: The payables turnover ratio has fluctuated over the quarters, with some periods showing a higher turnover rate than others. A higher turnover ratio indicates that the company is making its payments to suppliers more frequently, which could have implications on cash flow management and supplier relationships.
4. Working Capital Turnover: The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales. A higher turnover ratio indicates that the company is generating more sales with less investment in working capital, highlighting efficiency in capital utilization.
Overall, while each activity ratio provides valuable insights into different aspects of ProPetro Holding Corp's operations, it is important to consider these ratios collectively to obtain a comprehensive view of the company's operational efficiency and effectiveness.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 4.52 | 4.88 | 5.69 | 5.41 | 1.56 | 1.50 | 1.34 | 0.94 | 1.44 | 1.34 | 1.02 | 0.89 | 1.15 | 2.42 | 3.60 | 4.19 | 3.46 | 3.05 | 9.40 | 13.05 |
| Days of sales outstanding (DSO) | days | 53.00 | 56.62 | 57.62 | 71.98 | 58.96 | 66.28 | 61.57 | 64.03 | 54.18 | 70.79 | 77.32 | 74.41 | 40.08 | 32.98 | 16.45 | 43.26 | 38.20 | 49.87 | 70.97 | 70.89 |
| 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 |
Days of inventory on hand (DOH) measures how many days a company takes to sell its inventory. ProPetro Holding Corp's inventory turnover has been fluctuating over the past years, with an increasing trend since 2020, reaching 4.52 days as of December 31, 2023. This indicates that the company is able to sell its inventory quicker, which is a positive sign for operational efficiency.
Days of sales outstanding (DSO) reflects the average number of days it takes for a company to collect payment after a sale. ProPetro's DSO has also shown variability, with a peak in March 2021 at 71.98 days and a decrease to 53.00 days as of December 2023. The decreasing trend in DSO implies that the company is becoming more efficient in collecting receivables.
Number of days of payables measures how long a company takes to pay its suppliers. ProPetro's days of payables have been inconsistent, spiking in March 2020 and March 2019 at 252.25 days and 541.07 days, respectively. The company has managed to reduce this figure to 41.17 days as of December 31, 2023. A lower number of days of payables indicates that the company is paying its suppliers more promptly.
Overall, ProPetro Holding Corp's activity ratios demonstrate improvements in inventory turnover, receivables collection, and payables management over the years, suggesting enhanced operational efficiency and financial performance.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 1.69 | 1.70 | 1.59 | 1.56 | 1.45 | 1.38 | 1.34 | 1.18 | 1.07 | 0.90 | 0.77 | 0.63 | 0.87 | 1.12 | 1.49 | 1.84 | 1.94 | 1.92 | 1.84 | 1.95 |
| Total asset turnover | 1.10 | 1.14 | 1.11 | 1.06 | 1.00 | 1.01 | 0.81 | 0.91 | 0.81 | 0.70 | 0.61 | 0.52 | 0.73 | 1.00 | 1.38 | 1.79 | 1.41 | 1.41 | 1.33 | 1.31 |
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. ProPetro Holding Corp's fixed asset turnover has been on an upward trend, increasing from 1.95 in December 2019 to 1.69 in December 2023. This suggests that the company has been more effective in generating revenue from its fixed assets over time.
On the other hand, the total asset turnover ratio indicates how well a company is using all its assets to generate revenue. ProPetro's total asset turnover ratio has varied over the period, with fluctuations between 0.52 in March 2021 and 1.14 in September 2023. The ratio showed an overall increasing trend from December 2019 to September 2023, indicating that the company has improved its efficiency in generating revenue from its total assets.
In summary, ProPetro Holding Corp has shown improvement in both fixed asset turnover and total asset turnover ratios over the analyzed period, indicating increased efficiency in utilizing its assets to generate revenue.