ProPetro Holding Corp (PUMP)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,223,640 | 1,480,310 | 1,335,790 | 1,061,240 | 1,050,740 |
| Total stockholders’ equity | US$ in thousands | 816,273 | 998,392 | 954,033 | 826,302 | 870,771 |
| Financial leverage ratio | 1.50 | 1.48 | 1.40 | 1.28 | 1.21 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,223,640K ÷ $816,273K
= 1.50
The financial leverage ratio of ProPetro Holding Corp has shown a consistent increasing trend over the years, starting at 1.21 in 2020 and reaching 1.50 by the end of 2024. This indicates that the company's reliance on debt as a source of financing has been gradually increasing. A higher financial leverage ratio suggests that a larger portion of the company's assets is funded by debt, which can potentially magnify returns for shareholders but also increase financial risk. It is important for stakeholders to closely monitor this trend to assess the company's ability to manage its debt levels effectively and maintain financial stability.
Peer comparison
Dec 31, 2024