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