ProPetro Holding Corp (PUMP)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	33,354	78,862	111,918	68,772	149,036
Short-term investments	US$ in thousands	7,745	10,283	0	—	—
Total current liabilities	US$ in thousands	271,149	284,180	173,785	104,163	232,966
Cash ratio		0.15	0.31	0.64	0.66	0.64

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($33,354K + $7,745K) ÷ $271,149K
= 0.15

The cash ratio of ProPetro Holding Corp has shown a declining trend over the past five years, starting at 0.64 in 2019 and dropping to 0.15 in 2023. This indicates that the company has a decreasing ability to cover its short-term liabilities solely with its cash and cash equivalents. A cash ratio of less than 1 may imply that the company could potentially face liquidity challenges in meeting its immediate financial obligations. It is important for ProPetro Holding Corp to monitor its cash position and liquidity management closely to ensure it can meet its short-term obligations in a timely manner.