ProPetro Holding Corp (PUMP)

Total asset 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
Total assets	US$ in thousands	1,480,310	1,335,790	1,061,240	1,050,740	1,436,110
Total asset turnover		1.10	0.96	0.83	0.75	1.42

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $1,625,190K ÷ $1,480,310K
= 1.10

ProPetro Holding Corp's total asset turnover, a key efficiency ratio, indicates how efficiently the company utilizes its assets to generate revenue. The trend analysis reveals that the total asset turnover ratio has varied over the past five years, ranging from 0.75 to 1.42.

The ratio was lowest in 2020 at 0.75, indicating that for every dollar of assets, the company generated $0.75 of revenue. This suggests a lower efficiency in asset utilization during that year. However, the ratio improved significantly in 2019 to 1.42, indicating a more effective use of assets to generate revenue.

In 2023, the total asset turnover ratio stands at 1.10, which suggests that the company generated $1.10 of revenue for every dollar of assets. This indicates an improvement in asset utilization efficiency compared to the previous years.

Overall, ProPetro Holding Corp's total asset turnover has shown fluctuations over the years, with the latest value indicating a relatively efficient utilization of assets to generate revenue, which is a positive sign for the company's operational efficiency.