ProPetro Holding Corp (PUMP)

Operating profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Operating income (ttm)	US$ in thousands	-157,225	-143,978	80,797	130,536	135,226	185,663	190,653	177,849	168,594	99,154	43,587	-7,839	-68,695	-102,331	-132,889	-152,464	-93,507	21,476	137,642	248,869
Revenue (ttm)	US$ in thousands	1,444,286	1,471,508	1,534,444	1,612,672	1,630,399	1,631,548	1,540,758	1,420,592	1,279,702	1,176,847	1,093,932	995,736	874,514	782,788	666,399	555,621	828,956	1,109,405	1,517,542	1,940,927
Operating profit margin		-10.89%	-9.78%	5.27%	8.09%	8.29%	11.38%	12.37%	12.52%	13.17%	8.43%	3.98%	-0.79%	-7.86%	-13.07%	-19.94%	-27.44%	-11.28%	1.94%	9.07%	12.82%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-157,225K ÷ $1,444,286K
= -10.89%

The operating profit margin of ProPetro Holding Corp has shown fluctuating trends over the reported periods.

- The company experienced a positive operating profit margin of 12.82% as of March 31, 2020, which indicated that the company was able to generate profits from its core operations relative to its revenue.
- However, the margin declined to 9.07% by June 30, 2020, and continued to decrease in the subsequent quarters, reaching a negative territory of -11.28% by December 31, 2020.
- The negative trend persisted through the first half of 2021, with operating profit margins remaining in the negative double-digits.
- From March 31, 2022, there was a gradual improvement in the operating profit margins, turning positive at 3.98% by June 30, 2022, and further increasing to 13.17% by December 31, 2022.
- The positive trajectory continued into 2023, with operating profit margins remaining double-digit and relatively stable between 8.09% and 12.52% up to March 31, 2024.
- However, the margin declined in the subsequent quarters, dropping to negative values of -9.78% and -10.89% by September 30, 2024, and December 31, 2024, respectively.

Overall, the analysis indicates a volatile trend in ProPetro Holding Corp's operating profit margin, with fluctuations from positive to negative values over the reported periods. It is crucial for the company to closely monitor and manage its operating expenses and revenue generation to maintain sustainable profitability in the long term.