ProPetro Holding Corp (PUMP)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,625,190	1,278,100	876,900	786,849	2,045,170
Receivables	US$ in thousands	237,012	215,925	128,148	84,244	212,183
Receivables turnover		6.86	5.92	6.84	9.34	9.64

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,625,190K ÷ $237,012K
= 6.86

ProPetro Holding Corp's receivables turnover has been relatively stable over the past five years, ranging from 5.92 to 9.64. The receivables turnover ratio indicates how many times a company collects its average accounts receivable balance during a specific period, with a higher ratio generally considered more favorable.

In 2020 and 2019, ProPetro had the highest receivables turnover ratios of 9.34 and 9.64, respectively, suggesting efficient management of accounts receivable and a quicker collection cycle during those years. However, there was a dip in 2022 with a ratio of 5.92, indicating a longer collection period for accounts receivable compared to the previous years.

The receivables turnover ratio rebounded in 2023 to 6.86, indicating an improvement in collecting funds from customers compared to the prior year. Overall, ProPetro Holding Corp's receivables turnover has shown fluctuations, but the company has generally been able to efficiently manage its accounts receivable and collect payments in a timely manner.