ProPetro Holding Corp (PUMP)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	1,480,310	1,335,790	1,061,240	1,050,740	1,436,110
Total stockholders’ equity	US$ in thousands	998,392	954,033	826,302	870,771	969,305
Financial leverage ratio		1.48	1.40	1.28	1.21	1.48

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,480,310K ÷ $998,392K
= 1.48

The financial leverage ratio of ProPetro Holding Corp has exhibited fluctuations over the five year period from 2019 to 2023.

In 2019 and 2023, the financial leverage ratio was 1.48, indicating that the company had more debt relative to equity in these years. The higher ratio in 2019 might suggest a more aggressive use of debt to finance operations or investments.

In 2020, the financial leverage ratio decreased to 1.21, signaling a lower level of financial risk as the company had less debt in relation to equity that year. This decrease could indicate a shift towards a more conservative capital structure.

Subsequently, in 2021 and 2022, the financial leverage ratio rose to 1.28 and 1.40, respectively. This upward trend suggests a return to a higher level of debt relative to equity, potentially to fund growth initiatives or capital expenditures.

Overall, the varying financial leverage ratios reflect changes in ProPetro Holding Corp's capital structure and financial risk profile over the years, highlighting the company's flexibility in managing its debt levels in response to different business conditions.