ProPetro Holding Corp (PUMP)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	1,480,310	1,335,790	1,061,240	1,050,740	1,436,110
Operating ROA		8.81%	-0.19%	-6.47%	-12.49%	15.41%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $130,343K ÷ $1,480,310K
= 8.81%

The operating return on assets (operating ROA) of ProPetro Holding Corp has shown a fluctuating trend over the past five years. In 2023, the operating ROA improved significantly to 8.81%, indicating that the company generated stronger operating income relative to its total assets compared to the previous year. This positive trend suggests better operational efficiency and profitability for the company in 2023.

Conversely, in 2022 and 2021, the company reported negative operating ROA figures of -0.19% and -6.47% respectively, signifying that the company's operating income was insufficient to cover its total assets during those years. This could be a cause for concern as it indicates operational inefficiencies or financial challenges during those periods.

In 2020, the operating ROA was significantly lower at -12.49%, indicating a sharp decline in the company's ability to generate operating income from its assets. This could be attributed to various factors such as reduced revenues, higher expenses, or asset impairments.

On a positive note, in 2019, ProPetro Holding Corp achieved a robust operating ROA of 15.41%, indicating strong operational performance and efficient asset utilization that year.

Overall, the varying trend in operating ROA over the past five years suggests fluctuations in the company's operational effectiveness and profitability. It is crucial for ProPetro Holding Corp to continue monitoring and improving its operating ROA to ensure sustainable financial health and performance in the future.