ProPetro Holding Corp (PUMP)

Working capital 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
Total current assets	US$ in thousands	310,809	349,999	347,124	368,693	328,785	300,241	259,001	250,828	251,064	242,939	217,134	176,441	167,726	157,073	111,829	377,962	375,591	392,728	417,967	449,655
Total current liabilities	US$ in thousands	271,149	273,821	276,294	304,479	284,180	253,817	193,658	172,091	173,785	192,042	156,777	128,459	104,163	96,267	59,269	225,925	232,966	284,160	324,969	302,657
Working capital turnover		41.16	22.06	22.46	22.91	29.97	24.97	16.52	12.47	11.17	15.16	10.82	11.28	12.07	17.23	27.67	12.34	14.21	18.59	20.54	12.52

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,632,321K ÷ ($310,809K – $271,149K)
= 41.16

Working capital turnover is a financial ratio that measures how efficiently a company is able to generate revenue from its working capital. A higher working capital turnover ratio indicates that the company is effectively utilizing its current assets to support its operations and generate sales.

Based on the data provided for ProPetro Holding Corp, the working capital turnover ratio has shown fluctuations over the past few years. The ratio has ranged from a low of 10.82 to a high of 41.16. A peak ratio of 41.16 at Dec 31, 2023, suggests that the company was able to generate significant revenue relative to its working capital during that period.

However, the ratio has experienced variability throughout the periods, indicating fluctuations in the company's working capital efficiency. It is important for investors and analysts to further investigate the reasons behind these fluctuations to determine the underlying factors affecting the company's ability to efficiently utilize its working capital.

Overall, the trend of the working capital turnover ratio for ProPetro Holding Corp shows varying levels of efficiency in managing its current assets to generate revenue over the reported periods.