ProPetro Holding Corp (PUMP)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,664 | 33,354 | 88,862 | 111,918 | 68,772 |
| Short-term investments | US$ in thousands | 7,849 | 7,745 | 10,283 | 0 | — |
| Total current liabilities | US$ in thousands | 222,266 | 271,149 | 284,180 | 173,785 | 104,163 |
| Cash ratio | 0.05 | 0.15 | 0.35 | 0.64 | 0.66 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,664K
+ $7,849K)
÷ $222,266K
= 0.05
The cash ratio of ProPetro Holding Corp has shown a decreasing trend over the years. It stood at 0.66 as of December 31, 2020, indicating that the company had $0.66 in cash and cash equivalents for every $1 of current liabilities. By December 31, 2024, the ratio had declined to 0.05, suggesting a significant decrease in the company's ability to cover its short-term liabilities with its available cash. This downward trend in the cash ratio raises concerns about the firm's liquidity position and ability to meet its immediate financial obligations. Further analysis of the company's cash management practices and liquidity position may be warranted to understand the reasons behind this decline and assess the potential risks associated with the decreasing cash ratio.
Peer comparison
Dec 31, 2024