ProPetro Holding Corp (PUMP)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	1,632,321	1,680,827	1,590,769	1,471,214	1,336,820	1,159,290	1,079,169	981,483	863,284	771,558	652,875	541,465	767,169	1,047,619	1,454,144	1,876,294	2,027,408	2,018,028	1,910,491	1,840,680
Receivables	US$ in thousands	237,012	260,757	251,104	290,125	215,925	210,522	182,026	172,180	128,148	149,650	138,309	110,386	84,244	94,663	65,554	222,378	212,183	275,749	371,478	357,472
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,632,321K ÷ $237,012K
= 6.89

The receivables turnover ratio for ProPetro Holding Corp has fluctuated over the past five years, indicating varying effectiveness in collecting outstanding receivables from customers. The ratio has generally been above 5, indicating that the company is efficient in converting its accounts receivable into cash.

The highest receivables turnover ratio was recorded in June 2020 at 22.18, suggesting the company collected its outstanding receivables more than 22 times during that period. This could be due to effective credit management policies or a focus on collecting receivables promptly.

Conversely, the lowest receivables turnover ratio was observed in March 2021 at 4.72, indicating a slower collection of accounts receivable during that period. This could be a signal of potential credit issues with customers or delays in collections.

Overall, the trend in ProPetro's receivables turnover ratio indicates some fluctuations in the company's ability to efficiently collect outstanding receivables from customers. It may be beneficial for the company to closely monitor this ratio and potentially implement strategies to improve it in periods of lower turnover.