ProPetro Holding Corp (PUMP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.60% | 19.49% | 21.00% | 9.02% | 6.55% |
| Operating profit margin | 36.68% | 7.99% | 13.17% | -0.36% | -4.56% |
| Pretax margin | -11.72% | 7.08% | 0.58% | -7.83% | -17.04% |
| Net profit margin | -9.55% | 5.25% | 0.16% | -6.20% | -13.56% |
ProPetro Holding Corp's profitability ratios have shown varying trends over the years. The gross profit margin has demonstrated significant improvement, increasing from 6.55% in December 2020 to 44.60% in December 2024, indicating better cost management and potentially higher pricing power.
The operating profit margin has also experienced notable growth, moving from negative percentages in 2020 and 2021 to 36.68% in December 2024. This suggests operational efficiency enhancements and better control over operating expenses.
Moreover, the pretax margin fluctuated substantially, from -17.04% in December 2020 to 7.08% in December 2023, before declining to -11.72% in December 2024. This indicates varying levels of profitability before accounting for taxes, possibly influenced by changes in revenue, expenses, and tax implications.
Similarly, the net profit margin showed improvement from negative figures in 2020 and 2021 to 5.25% in December 2023. However, it worsened to -9.55% by December 2024, suggesting factors impacting profitability after considering all expenses, including interest and taxes.
In conclusion, ProPetro Holding Corp's profitability ratios reflect a mixed performance over the years, with notable improvements in certain margins but also some fluctuations and declines in others. Further analysis of the company's financial performance and strategy would be beneficial to fully evaluate its overall profitability trajectory.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 43.29% | 8.81% | 12.62% | -0.30% | -3.42% |
| Return on assets (ROA) | -11.27% | 5.78% | 0.15% | -5.11% | -10.19% |
| Return on total capital | -19.78% | 12.10% | 17.34% | -8.21% | -15.17% |
| Return on equity (ROE) | -16.89% | 8.58% | 0.21% | -6.56% | -12.29% |
ProPetro Holding Corp's profitability ratios have shown fluctuations over the past five years.
1. Operating return on assets (Operating ROA) increased significantly from -3.42% in December 2020 to 43.29% in December 2024, indicating improved operational efficiency and profitability.
2. Return on assets (ROA) has been volatile, with a low of -10.19% in December 2020, reaching a positive 5.78% in December 2023, but then decreasing to -11.27% by December 2024.
3. Return on total capital saw a notable positive shift from -15.17% in December 2020 to 17.34% in December 2022, suggesting enhanced utilization of both equity and debt capital to generate returns. However, this figure declined significantly to -19.78% by December 2024.
4. Return on equity (ROE) has also been inconsistent, with negative returns in 2020 and 2021, a marginal positive return in 2022, an increase to 8.58% in 2023, and a downturn to -16.89% in 2024.
Overall, ProPetro Holding Corp's profitability ratios demonstrate both positive and negative trends, suggesting varying levels of efficiency and profitability in the utilization of assets and capital over the years.