ProPetro Holding Corp (PUMP)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.03 | 0.02 | 0.00 | 0.00 | 0.09 |
| Debt-to-capital ratio | 0.04 | 0.03 | 0.00 | 0.00 | 0.12 |
| Debt-to-equity ratio | 0.05 | 0.03 | 0.00 | 0.00 | 0.13 |
| Financial leverage ratio | 1.48 | 1.40 | 1.28 | 1.21 | 1.48 |
The solvency ratios of ProPetro Holding Corp demonstrate a strong financial position with consistently low debt levels relative to its assets, capital, and equity over the past five years. The debt-to-assets ratio has remained fairly stable between 0.00 and 0.09, indicating that the company has maintained a conservative debt structure. Similarly, the debt-to-capital and debt-to-equity ratios have been consistently low, ranging from 0.00 to 0.12 and 0.00 to 0.13, respectively, reflecting a minimal reliance on debt financing.
Furthermore, the financial leverage ratio has remained relatively stable around 1.40 to 1.48, indicating that the company's assets are primarily funded through equity rather than debt. This suggests a lower financial risk for the company, as it indicates a lower dependency on debt to finance its operations and investments.
Overall, the solvency ratios of ProPetro Holding Corp suggest a prudent and conservative financial management approach, with a strong ability to meet its financial obligations and maintain a healthy balance sheet position.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 22.76 | 5.60 | -110.46 | -55.44 | 30.90 |
ProPetro Holding Corp's interest coverage ratio has fluctuated significantly over the past five years. In 2023, the interest coverage ratio improved substantially to 22.76, indicating the company's ability to cover its interest expenses with operating income has strengthened. This is a positive sign as it suggests a healthier financial position compared to previous years. In 2022, the interest coverage ratio was 5.60, showing a moderate ability to cover interest payments. However, in 2021 and 2020, the interest coverage ratios were negative (-110.46 and -55.44 respectively), indicating that the company's operating income was insufficient to cover its interest expenses during those years. This could raise concerns about the company's financial health and ability to meet its debt obligations. In 2019, the interest coverage ratio was 30.90, indicating a strong ability to cover interest payments that year. Overall, the significant fluctuations in the interest coverage ratio highlight the importance of monitoring ProPetro Holding Corp's financial performance and debt management closely.