ProPetro Holding Corp (PUMP)
Debt-to-equity 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-equity ratio | 0.05 | 0.03 | 0.00 | 0.00 | 0.13 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $45,000K ÷ $998,392K
= 0.05
The debt-to-equity ratio of ProPetro Holding Corp has shown fluctuations over the past five years.
In 2019, the company had a relatively higher debt-to-equity ratio of 0.13, indicating a higher level of debt compared to equity in its capital structure. However, in 2020 and 2021, the company significantly reduced its debt levels, resulting in a debt-to-equity ratio of 0.00 in both years, which implies that the company had no debt or very minimal debt relative to its equity.
In 2022 and 2023, the debt-to-equity ratio slightly increased to 0.03 and 0.05, respectively. While these ratios are still relatively low, they indicate a slight increase in the company's utilization of debt in its capital structure compared to the previous years.
Overall, the trend in ProPetro Holding Corp's debt-to-equity ratio suggests a strategic focus on reducing debt levels in the short term, followed by a slight increase in leveraging with debt in the more recent years. Monitoring this ratio can provide insights into the company's financial stability, risk management, and capital allocation decisions.
Peer comparison
Dec 31, 2023