ProPetro Holding Corp (PUMP)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-137,859	85,634	2,030	-54,185	-107,020
Total stockholders’ equity	US$ in thousands	816,273	998,392	954,033	826,302	870,771
ROE		-16.89%	8.58%	0.21%	-6.56%	-12.29%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-137,859K ÷ $816,273K
= -16.89%

Based on the provided data, ProPetro Holding Corp's return on equity (ROE) has shown fluctuating performance over the past five years.

In December 2020, the ROE was negative at -12.29%, indicating that the company's net income was not sufficient to generate a positive return for shareholders' equity. This negative ROE suggests potential inefficiencies or losses within the company.

By December 2021, the ROE improved but remained negative at -6.56%. Although there was a slight decrease in the negative ROE, the company still struggled to generate a positive return for shareholders.

In December 2022, the ROE turned positive at 0.21%, indicating that the company started to generate a small return for shareholders' equity. This may suggest improved financial performance or better utilization of shareholders' funds.

By December 2023, the ROE further increased to 8.58%, showing a significant improvement in profitability and efficiency in utilizing shareholders' equity. This positive ROE indicates that the company was more successful in generating profits relative to the shareholders' equity.

However, in December 2024, the ROE dropped to a significant negative value of -16.89%, reversing the positive trend observed in the previous years. This steep decline in ROE raises concerns about potential financial challenges or inefficiencies within ProPetro Holding Corp.

Overall, the analysis of the ROE data suggests that ProPetro Holding Corp has experienced volatility in its profitability and efficiency in utilizing shareholders' equity over the past five years. It is important for stakeholders to closely monitor the company's financial performance and identify the underlying factors contributing to these fluctuations.