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
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.