ProPetro Holding Corp (PUMP)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.05% | 7.66% | 24.20% | 26.05% | 28.46% |
| Operating profit margin | 8.02% | -0.20% | -7.83% | -16.68% | 10.82% |
| Pretax margin | 7.11% | 0.58% | -7.80% | -17.09% | 10.44% |
| Net profit margin | 5.27% | 0.16% | -6.18% | -13.60% | 7.97% |
ProPetro Holding Corp's profitability ratios have fluctuated over the past five years. The gross profit margin has shown a declining trend from 28.46% in 2019 to 12.05% in 2023, indicating a decrease in the company's ability to generate profits after accounting for the cost of goods sold.
While the operating profit margin improved significantly from negative figures in 2020 and 2021 to 8.02% in 2023, it still remains relatively low compared to previous years. This suggests that ProPetro has been able to better control its operating expenses to some extent but may still have room for improvement in operational efficiency.
The pretax margin has followed a similar pattern to the operating profit margin, showing improvement over the years but remaining below historical levels. This indicates that the company has been able to generate more income before taxes relative to revenue in recent years.
The net profit margin, which represents the percentage of revenue that remains after all expenses have been deducted, has also seen fluctuations. It has increased from negative figures in 2020 and 2021 to 5.27% in 2023. This indicates that ProPetro has made progress in managing its costs and achieving profitability at the bottom line, although it is not yet recovered to the levels seen in 2019.
Overall, ProPetro Holding Corp's profitability ratios show a mixed performance, with signs of improvement in recent years but still remaining below historical levels in some aspects. Analyzing the trends in these ratios can provide insights into the company's operational efficiency and profitability over time.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.81% | -0.19% | -6.47% | -12.49% | 15.41% |
| Return on assets (ROA) | 5.78% | 0.15% | -5.11% | -10.19% | 11.35% |
| Return on total capital | 11.58% | 0.91% | -8.21% | -15.17% | 20.07% |
| Return on equity (ROE) | 8.58% | 0.21% | -6.56% | -12.29% | 16.82% |
ProPetro Holding Corp's profitability ratios have shown varying trends over the past five years.
- Operating return on assets (Operating ROA) has been positive in recent years, with a notable increase from -12.49% in 2020 to 8.81% in 2023, indicating better operational efficiency in generating profits from its assets.
- Return on assets (ROA) has shown a positive trend as well, with a significant improvement from negative figures in 2020 and 2021 to 5.78% in 2023, reflecting the company's ability to generate earnings relative to its total assets.
- Return on total capital has also experienced a positive trajectory, with a considerable jump from -15.17% in 2020 to 11.58% in 2023, implying that the company has been more effective in earning returns on its total invested capital.
- Return on equity (ROE) has similarly demonstrated an upward trend, rebounding from negative values in 2020 and 2021 to 8.58% in 2023, suggesting improved profitability for shareholders relative to their equity investment in the company.
Overall, the recent improvements in these profitability ratios indicate that ProPetro Holding Corp has been more efficient in utilizing its assets and capital to generate profits, which could be a positive indicator of the company's financial health and performance.