ProPetro Holding Corp (PUMP)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	85,634	2,030	-54,185	-107,020	163,010
Total assets	US$ in thousands	1,480,310	1,335,790	1,061,240	1,050,740	1,436,110
ROA		5.78%	0.15%	-5.11%	-10.19%	11.35%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $85,634K ÷ $1,480,310K
= 5.78%

The return on assets (ROA) of ProPetro Holding Corp has exhibited significant fluctuations over the past five years. In 2023, the ROA improved substantially to 5.78%, indicating that the company generated a higher return on its assets compared to the previous year. This improvement suggests better asset utilization or higher profitability relative to the total assets employed.

In 2022, the ROA was a mere 0.15%, reflecting a very low return on assets. This could be a sign of inefficiency in asset management or lower profitability, requiring further investigation into the company's operational performance during that year.

In 2021, the ROA was negative at -5.11%, indicating that the company experienced a loss relative to its total assets. This suggests a poor financial performance and highlights potential issues with profitability and asset management.

Similarly, in 2020, ProPetro Holding Corp recorded a significantly negative ROA of -10.19%, indicating a substantial loss compared to the assets deployed by the company. This could be a result of operational challenges, poor financial management, or economic downturns impacting the company's performance.

In contrast, in 2019, the ROA was a strong 11.35%, indicating that ProPetro Holding Corp was able to generate a high return on its assets during that year. This could be attributed to effective asset utilization, improved profitability, or strategic decisions that positively impacted the company's financial performance.

Overall, the fluctuating trend in ProPetro Holding Corp's ROA over the past five years highlights the importance of closely monitoring and analyzing this ratio to assess the company's financial health, operational efficiency, and performance management.