ProPetro Holding Corp (PUMP)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	195,853	97,954	212,248	204,953	581,958
Revenue	US$ in thousands	1,625,190	1,278,100	876,900	786,849	2,045,170
Gross profit margin		12.05%	7.66%	24.20%	26.05%	28.46%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $195,853K ÷ $1,625,190K
= 12.05%

The gross profit margin of ProPetro Holding Corp has shown fluctuations over the past five years. In 2019, the company had a relatively high gross profit margin of 28.46%, indicating that it was able to efficiently control its production costs and generate a higher profit on each dollar of sales. However, in the following years, the gross profit margin declined significantly to 26.05% in 2020 and further to 24.20% in 2021, suggesting potential challenges in managing production costs or pricing strategies.

In 2022, there was a notable improvement in the gross profit margin to 7.66%, signaling a potential turnaround in the company's cost management or pricing strategies. The most recent data for 2023 shows a further increase in the gross profit margin to 12.05%, which may indicate ongoing efforts to enhance operational efficiency and profitability.

Overall, the fluctuation in ProPetro Holding Corp's gross profit margin over the years reflects changes in its cost structure, pricing policies, and operational effectiveness. Further analysis of the company's financial performance and industry trends may provide additional insights into the factors influencing its gross profit margin dynamics.