ProPetro Holding Corp (PUMP)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	120,810	157,004	123,475	30,660	8,992	-33,843	-53,083	-24,872	-67,822	-101,444	-132,005	-151,545	-132,115	-45,657	39,593	119,613	220,645	259,468	272,339	277,282
Interest expense (ttm)	US$ in thousands	5,308	3,581	2,649	2,138	1,605	1,177	1,083	573	615	653	647	1,279	2,384	3,672	5,284	6,519	7,141	7,594	7,325	7,530
Interest coverage		22.76	43.84	46.61	14.34	5.60	-28.75	-49.01	-43.41	-110.28	-155.35	-204.03	-118.49	-55.42	-12.43	7.49	18.35	30.90	34.17	37.18	36.82

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $120,810K ÷ $5,308K
= 22.76

ProPetro Holding Corp's interest coverage ratio has shown significant fluctuations over the past few quarters. The interest coverage ratio measures the company's ability to pay its interest expenses with its operating income. A ratio above 1 indicates that the company is generating enough operating income to cover its interest expenses.

From the data provided, we can see that the interest coverage ratio for ProPetro has ranged from -204.03 to 46.61 over the past few quarters. The negative ratios indicate that the company's operating income was not sufficient to cover its interest expenses during those periods.

The interest coverage ratio improved significantly in the most recent quarters, reaching 22.76 at the end of December 2023. This suggests that the company's operating income has increased substantially, providing a stronger buffer to cover its interest payments.

Overall, it is essential for investors and stakeholders to monitor ProPetro's interest coverage ratio closely to ensure that the company can meet its debt obligations and maintain financial stability.