Helmerich and Payne Inc (HP)
Days of inventory on hand (DOH)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 16.13 | 20.64 | 18.58 | 14.48 | 18.69 | |
| DOH | days | 22.63 | 17.68 | 19.65 | 25.20 | 19.52 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 16.13
= 22.63
The days of inventory on hand (DOH) for Helmerich and Payne Inc has shown variability over the last five years. The DOH measure indicates how long, on average, the company holds onto its inventory before selling it.
In 2024, the company held onto its inventory for approximately 22.63 days, showing an increase compared to the previous year. This increase may suggest that the company's inventory turnover has slowed down, which could tie up more capital in inventory and potentially indicate inefficiencies in inventory management or a decrease in sales.
In 2023, the DOH was relatively lower at 17.68 days, indicating that the company was more efficient in managing its inventory and turning it into sales.
In 2022 and 2020, the DOH figures were 19.65 days and 19.52 days respectively, showing consistency in inventory management over those years.
Conversely, in 2021 the DOH peaked at 25.20 days, signaling that the company took longer to sell its inventory compared to other years. This could be an indication of excess inventory levels or declining demand for its products.
Overall, fluctuations in the DOH ratio for Helmerich and Payne Inc over the analyzed period suggest varying levels of efficiency in inventory management and potential impacts on cash flow and profitability. Further analysis and comparison with industry benchmarks may provide additional insights into the company's performance in this aspect.
Peer comparison
Sep 30, 2024