ProPetro Holding Corp (PUMP)

Working capital 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 current assets US$ in thousands 310,809 328,785 251,064 167,726 375,591
Total current liabilities US$ in thousands 271,149 284,180 173,785 104,163 232,966
Working capital turnover 40.98 28.65 11.35 12.38 14.34

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,625,190K ÷ ($310,809K – $271,149K)
= 40.98

The working capital turnover for ProPetro Holding Corp has shown a notable increasing trend over the past five years. In 2019, the working capital turnover was 14.34, which increased to 12.38 in 2020 and further improved to 11.35 in 2021. Notably, there was a significant jump to 28.65 in 2022, indicating a substantial improvement in the efficiency of utilizing working capital. This trend continued with a remarkable working capital turnover of 40.98 in 2023.

A higher working capital turnover signifies that the company is generating sales more efficiently relative to its investment in working capital. The consistent increase in the ratio suggests that ProPetro Holding Corp has been managing its working capital effectively and utilizing its resources efficiently to drive revenue growth. This improvement can indicate enhanced operational efficiency and better management of current assets and liabilities, leading to increased profitability and potential for sustainable growth in the future.