ProPetro Holding Corp (PUMP)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -141,161 | -138,704 | 88,424 | 137,070 | 124,879 | 161,072 | 123,474 | 110,599 | 96,158 | 53,324 | 34,084 | -17,645 | -67,822 | -101,446 | -132,007 | -151,546 | -65,134 | 50,142 | 166,620 | 278,113 |
| Interest expense (ttm) | US$ in thousands | 7,815 | 8,225 | 7,455 | 6,670 | 5,308 | 3,581 | 2,649 | 2,138 | 1,605 | 1,177 | 1,083 | 573 | 615 | 653 | 647 | 1,279 | 2,566 | 3,854 | 5,466 | 6,701 |
| Interest coverage | -18.06 | -16.86 | 11.86 | 20.55 | 23.53 | 44.98 | 46.61 | 51.73 | 59.91 | 45.31 | 31.47 | -30.79 | -110.28 | -155.35 | -204.03 | -118.49 | -25.38 | 13.01 | 30.48 | 41.50 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-141,161K ÷ $7,815K
= -18.06
ProPetro Holding Corp's interest coverage ratio has experienced significant fluctuations over the past few years. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
From March 2020 to June 2022, the interest coverage ratio steadily decreased from a high of 41.50 to a low of -204.03, indicating a deteriorating ability to cover interest payments with operating income. This trend suggests potential financial distress or challenges in generating sufficient operating income to meet interest expenses during this period.
However, starting from June 2022, there was a significant improvement in the interest coverage ratio, reaching a positive value of 59.91 by December 2022. This positive trend continued through March 2024, with the interest coverage ratio stabilizing around the range of 20.55 to 46.61. It indicates an enhanced ability to cover interest payments with operating income and suggests a healthier financial position for the company during this period.
Overall, ProPetro Holding Corp's interest coverage ratio has displayed volatility and a mix of positive and negative trends in recent years. The company seems to have improved its ability to cover interest expenses towards the later part of the analyzed period, which could be seen as a positive development for its financial health and sustainability.
Peer comparison
Dec 31, 2024