ProPetro Holding Corp (PUMP)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	998,392	954,033	826,302	870,771	969,305
ROE		8.58%	0.21%	-6.56%	-12.29%	16.82%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $85,634K ÷ $998,392K
= 8.58%

ProPetro Holding Corp's return on equity (ROE) has exhibited significant fluctuations over the past five years, indicating varying levels of profitability and performance.

In 2023, the company's ROE improved to 8.58%, a substantial increase from the previous year's meager 0.21%. This suggests that ProPetro Holding Corp was able to generate more profit relative to shareholders' equity in 2023, reflecting improved operational efficiency and potentially better utilization of the company's assets.

The negative ROE values in 2021 (-6.56%) and 2020 (-12.29%) indicate that the company was not generating sufficient returns to cover shareholders' equity during those periods. This could be attributed to financial challenges, operational inefficiencies, or other factors impacting the company's profitability.

The relatively high ROE of 16.82% in 2019 indicates that ProPetro Holding Corp was able to deliver strong returns for shareholders that year. This could be a result of effective cost management, increased revenues, or other strategic initiatives that enhanced profitability.

Overall, the trend in ProPetro Holding Corp's ROE shows significant variability, highlighting the company's performance fluctuations and the need for a closer examination of the factors driving these changes. Investors and stakeholders should monitor the company's ROE closely to assess its profitability and value creation over time.