ProPetro Holding Corp (PUMP)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.03 | 0.03 | 0.04 | 0.02 | 0.02 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.10 | 0.09 | 0.09 | 0.10 | 0.11 |
| Debt-to-capital ratio | 0.04 | 0.04 | 0.06 | 0.03 | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.10 | 0.12 | 0.12 | 0.14 | 0.16 |
| Debt-to-equity ratio | 0.05 | 0.04 | 0.06 | 0.03 | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.11 | 0.13 | 0.14 | 0.17 | 0.18 |
| 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 |
The solvency ratios of ProPetro Holding Corp, as indicated by the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, show a consistent trend of maintaining low levels of debt relative to its assets, capital, and equity over the periods analyzed.
The debt-to-assets ratio ranged between 0.02 and 0.04, indicating that the company relied minimally on debt to finance its assets. Similarly, the debt-to-capital and debt-to-equity ratios stayed relatively low between 0.03 and 0.06, suggesting a conservative approach to leverage and capital structure management.
The financial leverage ratio ranged between 1.09 and 1.63, reflecting how the company's assets were financed with a moderate level of debt compared to equity. Overall, the solvency ratios suggest that ProPetro Holding Corp has maintained a stable financial position with a prudent level of debt utilization, which may be viewed positively by investors and creditors in terms of the company's ability to meet its financial obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations. Looking at the data provided for ProPetro Holding Corp, we observe fluctuations in the interest coverage ratio over the past few quarters.
In the most recent quarter, December 31, 2023, ProPetro Holding Corp had an interest coverage ratio of 22.76, indicating a strong ability to cover its interest expenses. This is a significant improvement compared to the previous quarter, September 30, 2023, where the ratio was 43.84, suggesting an even stronger position.
However, delving further back, we note that in March 31, 2022, the interest coverage ratio dropped to 14.34, which may raise concerns about the company's ability to meet its interest payments. The negative interest coverage ratios in September 30, 2022, and June 30, 2022, are particularly alarming, as they suggest that the company had insufficient operating income to cover its interest expenses during those periods.
The significant fluctuations in ProPetro Holding Corp's interest coverage ratio over the quarters indicate volatility in the company's financial performance and raise questions about its financial stability. It is crucial for investors and stakeholders to closely monitor these ratios to assess the company's ability to service its debt and manage its financial obligations effectively.