ProPetro Holding Corp (PUMP)
Debt-to-equity 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 | ||
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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-equity ratio | 0.05 | 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 | 0.11 | 0.13 | 0.14 | 0.17 | 0.18 |
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 for ProPetro Holding Corp has shown fluctuations over the past five years, ranging from 0.00 to 0.18. In general, the company has maintained a relatively low level of debt compared to its equity during this period. Notably, in the most recent quarter of Dec 31, 2023, the debt-to-equity ratio decreased to 0.05 from 0.13 in the previous quarter, indicating a reduction in the proportion of debt relative to equity.
It is important to highlight that a low debt-to-equity ratio suggests that the company relies more on equity financing rather than debt to fund its operations and growth. This can be viewed positively by investors and creditors as it implies lower financial risk and greater financial stability. However, it is also crucial to monitor future trends in the debt-to-equity ratio to ensure that the company maintains a balanced capital structure and effectively manages its leverage levels.
Peer comparison
Dec 31, 2023