ProPetro Holding Corp (PUMP)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	33,354	54,330	49,890	26,498	78,862	43,208	69,789	70,768	111,918	84,601	72,701	55,859	68,772	54,255	37,306	143,717	149,036	109,191	36,279	79,518
Short-term investments	US$ in thousands	7,745	8,163	6,437	6,489	10,283	8,503	—	—	0	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		0.15	0.23	0.20	0.11	0.31	0.20	0.36	0.41	0.64	0.44	0.46	0.43	0.66	0.56	0.63	0.64	0.64	0.38	0.11	0.26

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 varied over the past few years, ranging from a low of 0.11 to a high of 0.66. A cash ratio of 1 or higher is generally considered ideal, indicating that a company has enough cash to cover its short-term obligations.

From the data provided in the table, it can be observed that the cash ratio has been fluctuating throughout the periods, which suggests potential variability in the company's ability to cover its short-term liabilities solely with cash.

It is important to note that a higher cash ratio indicates a stronger financial position in terms of liquidity, while a lower ratio may indicate potential liquidity challenges. Therefore, continual monitoring of the cash ratio is essential to assess ProPetro Holding Corp's short-term solvency and liquidity risk.