ProPetro Holding Corp (PUMP)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 45,000 | 45,000 | 60,000 | 30,000 | 30,000 | — | — | — | 0 | — | — | — | 0 | 0 | 0 | 110,000 | 130,000 | 130,000 | 150,000 | 160,000 |
| Total stockholders’ equity | US$ in thousands | 998,392 | 1,027,330 | 1,008,360 | 982,923 | 954,033 | 830,538 | 817,036 | 847,212 | 826,302 | 842,815 | 844,743 | 847,269 | 870,771 | 911,767 | 938,429 | 961,516 | 969,305 | 944,100 | 909,037 | 869,541 |
| Debt-to-capital ratio | 0.04 | 0.04 | 0.06 | 0.03 | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.10 | 0.12 | 0.12 | 0.14 | 0.16 |
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 seen fluctuations over the past few years. As of December 31, 2023, the ratio stands at 0.04, indicating that the company's debt accounts for 4% of its total capital. This level of debt relative to capital suggests a relatively low financial risk for the company.
The ratio has remained relatively stable between 0.03 and 0.06 in recent quarters, which indicates a conservative approach to managing debt and capital structure. The company has been able to maintain a strong financial position with low leverage, which can provide stability and flexibility for future growth opportunities.
It is worth noting that there was a slight increase in the debt-to-capital ratio in March 2020, reaching 0.12, and a peak at 0.16 in December 2019. However, since then, the company has effectively reduced its debt levels and improved its capital structure.
Overall, the trend in ProPetro Holding Corp's debt-to-capital ratio reflects prudent financial management practices, with the company maintaining a conservative leverage position that is favorable for long-term sustainability and growth.
Peer comparison
Dec 31, 2023