ProPetro Holding Corp (PUMP)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	45,000	30,000	0	0	130,000
Total assets	US$ in thousands	1,480,310	1,335,790	1,061,240	1,050,740	1,436,110
Debt-to-assets ratio		0.03	0.02	0.00	0.00	0.09

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $45,000K ÷ $1,480,310K
= 0.03

The debt-to-assets ratio of ProPetro Holding Corp has exhibited variations over the past five years. In 2019, the ratio was considerably higher at 0.09, indicating that a significant portion of the company's assets was financed through debt. However, in the following years, the ratio decreased substantially to 0.00 in both 2020 and 2021, suggesting that the company had either reduced its debt levels or increased its asset base during those periods.

In 2022, the debt-to-assets ratio slightly increased to 0.02, indicating a small proportion of assets being financed through debt. This uptick may signal a strategic decision to utilize debt for expanding operations or making investments. By the end of 2023, the ratio further increased to 0.03, which could imply a continued growth in debt relative to assets, although the ratio still remains relatively low.

Overall, the trend in the debt-to-assets ratio indicates that ProPetro Holding Corp has managed its debt and asset structure effectively over the years, with a relatively low reliance on debt financing compared to its assets. It is essential for the company to monitor this ratio to ensure a healthy balance between debt and assets for sustainable financial stability and growth.