ProPetro Holding Corp (PUMP)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.50 | 1.54 | 1.55 | 1.54 | 1.48 | 1.43 | 1.42 | 1.42 | 1.40 | 1.38 | 1.31 | 1.28 | 1.28 | 1.30 | 1.26 | 1.23 | 1.21 | 1.20 | 1.17 | 1.48 |
ProPetro Holding Corp has consistently maintained a very low level of debt in relation to its assets, capital, and equity, as reflected by debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 across all quarters from March 31, 2020, to December 31, 2024. This indicates that the company relies minimally on debt financing to support its operations and investments.
The financial leverage ratio, which measures the extent to which the company relies on debt as opposed to equity, has shown a slight increase over the quarters, from 1.48 on March 31, 2020, to 1.50 on December 31, 2024. While this ratio has been increasing, it still remains at a moderate level, indicating that ProPetro Holding Corp's financial leverage is not excessive and it has a balanced capital structure.
Overall, based on the solvency ratios analyzed, ProPetro Holding Corp appears to have a strong financial position with minimal debt obligations and a conservative approach to leverage, thus indicating a low risk of financial distress and a solid foundation for future growth and stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
ProPetro Holding Corp's interest coverage ratio has fluctuated significantly over the past few years. The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt.
In the first quarter of 2020, the interest coverage ratio stood at a healthy 41.50, indicating the company's ability to cover its interest expenses 41.50 times over. However, by the end of the same year in December 2020, the ratio had plummeted to -25.38, signaling a concerning sign as the company's earnings were not sufficient to cover its interest payments.
The situation worsened in the following quarters, with the interest coverage ratio continuing to decline drastically into negative territory by the second quarter of 2021. The company faced severe challenges in managing its interest expenses as the ratio hit -204.03 in June 2021.
However, there was a significant turnaround in the company's financial position by the end of 2022, with the interest coverage ratio reaching 59.91 in December 2022. This improvement continued into 2023, with the ratio remaining relatively stable above 20, indicating the company's ability to cover its interest payments comfortably.
Overall, the trend in ProPetro Holding Corp's interest coverage ratio highlights the company's financial struggles in the past, followed by a recovery phase and stabilization in recent years. It is crucial for investors and stakeholders to closely monitor this ratio to assess the company's ability to meet its debt obligations in the future.