ProPetro Holding Corp (PUMP)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 4.62 | 4.67 | 5.13 | 5.22 | 4.83 | 4.49 | 5.52 | 5.88 | 1.82 | 1.51 | 1.38 | 0.97 | 1.81 | 1.75 | 1.50 | 1.54 | 1.34 | 0.72 | 0.83 | 0.58 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 4.62 | 4.67 | 5.13 | 5.22 | 4.83 | 4.49 | 5.52 | 5.88 | 1.82 | 1.51 | 1.38 | 0.97 | 1.81 | 1.75 | 1.50 | 1.54 | 1.34 | 0.72 | 0.83 | 0.58 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 4.62 + — – —
= 4.62
The cash conversion cycle measures the time it takes for a company like ProPetro Holding Corp to convert its investments in raw materials into cash receipts. A shorter cash conversion cycle indicates more efficient management of working capital and liquidity.
Analyzing the data provided, we can see that ProPetro's cash conversion cycle has shown some variability over the quarters. From March 31, 2020, to June 30, 2022, the cash conversion cycle remained relatively stable, fluctuating between 0.58 days and 1.82 days. This suggests that the company was able to efficiently manage its working capital during this period.
However, from March 31, 2023, to December 31, 2024, the cash conversion cycle increased significantly, reaching a peak of 5.88 days on March 31, 2023. This substantial increase could indicate potential challenges in ProPetro's working capital management or delays in converting its investments into cash receipts during this period.
It would be important for stakeholders to monitor ProPetro's cash conversion cycle closely to ensure that the company is effectively managing its working capital and maintaining liquidity levels to support its operations and growth initiatives.
Peer comparison
Dec 31, 2024