ProPetro Holding Corp (PUMP)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 33,354 | 78,862 | 111,918 | 68,772 | 149,036 |
| Short-term investments | US$ in thousands | 7,745 | 10,283 | 0 | — | — |
| Receivables | US$ in thousands | 237,012 | 215,925 | 128,148 | 84,244 | 212,183 |
| Total current liabilities | US$ in thousands | 271,149 | 284,180 | 173,785 | 104,163 | 232,966 |
| Quick ratio | 1.03 | 1.07 | 1.38 | 1.47 | 1.55 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($33,354K
+ $7,745K
+ $237,012K)
÷ $271,149K
= 1.03
The quick ratio of ProPetro Holding Corp has exhibited a declining trend over the past five years. Starting at 1.55 in 2019, the quick ratio decreased to 1.47 in 2020, further dropping to 1.38 in 2021, then to 1.07 in 2022, and finally to 1.03 in 2023.
The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets. A quick ratio of 1 or higher is generally considered healthy, as it indicates that the company can cover its current liabilities with its quick assets. However, a declining trend in the quick ratio may raise concerns about the company's liquidity position and its ability to meet its short-term obligations.
Further analysis is required to determine the factors contributing to the declining quick ratio trend and whether it is indicative of potential liquidity challenges for ProPetro Holding Corp.
Peer comparison
Dec 31, 2023