ProPetro Holding Corp (PUMP)

Financial leverage 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
Total assets US$ in thousands 1,480,310 1,472,220 1,433,380 1,394,150 1,335,790 1,143,610 1,335,790 1,084,450 1,061,240 1,098,750 1,066,790 1,044,780 1,050,740 1,050,740 1,050,740 1,050,740 1,436,110 1,436,110 1,436,110 1,409,000
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
Financial leverage ratio 1.48 1.43 1.42 1.42 1.40 1.38 1.63 1.28 1.28 1.30 1.26 1.23 1.21 1.15 1.12 1.09 1.48 1.52 1.58 1.62

December 31, 2023 calculation

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

ProPetro Holding Corp's financial leverage ratio has shown fluctuations over the past several quarters. The ratio has exhibited an upward trend from March 2020 to June 2022, indicating an increase in the company's reliance on debt financing during this period.

However, from June 2022 to December 2023, there has been some volatility in the ratio, with ups and downs observed. Notably, the ratio peaked at 1.63 in June 2022, suggesting a relatively high level of financial leverage at that point.

Subsequently, the ratio decreased to 1.28 in March 2023 and has since fluctuated within a relatively narrow range around the 1.4 mark. This may indicate a stabilization or moderation in the company's reliance on debt in its capital structure.

Overall, the financial leverage ratio of ProPetro Holding Corp has shown variability over the quarters, reflecting changes in the company's debt levels relative to its equity. Investors and stakeholders should continue to monitor this ratio to assess the company's capital structure and financial risk management.


Peer comparison

Dec 31, 2023