ProPetro Holding Corp (PUMP)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	998,392	954,033	826,302	870,771	969,305
Debt-to-capital ratio		0.04	0.03	0.00	0.00	0.12

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $45,000K ÷ ($45,000K + $998,392K)
= 0.04

The debt-to-capital ratio of ProPetro Holding Corp has fluctuated over the last five years.

In 2023, the ratio stands at 0.04, indicating that 4% of the company's capital is funded by debt. This suggests a relatively low level of leverage compared to the capital structure. The increase from the previous year's ratio of 0.03 may suggest a slight rise in debt relative to the total capital employed.

In 2021 and 2020, the company had a debt-to-capital ratio of 0.00, implying that the company had no debt in its capital structure during those years. This signifies a conservative financial approach with minimal reliance on debt financing for its operations.

In 2019, the ratio was higher at 0.12, indicating that 12% of the company's capital was financed through debt. This implies a higher level of leverage compared to the other years in the dataset.

Overall, the trend in ProPetro Holding Corp's debt-to-capital ratio shows variability over the years, with the company taking on different levels of debt relative to its capital structure. It is important to monitor this ratio to assess the company's risk and financial health.