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.