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.