ProPetro Holding Corp (PUMP)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 130,343 | -2,591 | -68,696 | -131,243 | 221,362 |
| Revenue | US$ in thousands | 1,625,190 | 1,278,100 | 876,900 | 786,849 | 2,045,170 |
| Operating profit margin | 8.02% | -0.20% | -7.83% | -16.68% | 10.82% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $130,343K ÷ $1,625,190K
= 8.02%
ProPetro Holding Corp's operating profit margin has exhibited significant volatility over the past five years. In 2023, the operating profit margin improved to 8.02%, indicating that the company was able to generate 8.02 cents of operating profit for every dollar of sales. This marked a notable recovery from the negative margins in 2022 and 2021. In 2022, the company experienced a negative operating profit margin of -0.20%, and in 2021, it decreased further to -7.83%.
The significant improvement in the operating profit margin in 2023 compared to the previous years may suggest efficient cost management, increased revenue generation, or a combination of both. However, it is important to note that in 2020, the company's operating profit margin was significantly negative at -16.68%, reflecting operational challenges or financial difficulties faced by the company that year.
Prior to the challenging year of 2020, ProPetro exhibited a strong operating profit margin of 10.82% in 2019. This implies that the company was able to efficiently convert its sales into operating profits during that period. Overall, the fluctuation in the operating profit margin of ProPetro Holding Corp over the years indicates the company's varying operational performance and financial health.
Peer comparison
Dec 31, 2023