Helmerich and Payne Inc (HP)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.59 | 7.11 | 4.49 | 5.32 | 9.21 | |
| DSO | days | 55.43 | 51.36 | 81.32 | 68.56 | 39.63 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.59
= 55.43
Based on the data provided, the Days of Sales Outstanding (DSO) for Helmerich and Payne Inc have fluctuated over the past five years. In 2024, the DSO was 55.43 days, showing an increase from the previous year's 51.36 days. This indicates that on average, it took the company approximately 55.43 days to collect its accounts receivable during the most recent fiscal period.
Comparing the DSO to previous years, the company had a significantly higher DSO in 2022 at 81.32 days, which suggests a longer collection period for accounts receivable during that year. The DSO decreased to 68.56 days in 2021 but surged to a lower level of 39.63 days in 2020. The sharp decline in 2020 may signify improved efficiency in collecting accounts receivable that year.
Overall, the fluctuation in DSO levels over the years suggests varying trends in the company's accounts receivable management. It is crucial for Helmerich and Payne Inc to closely monitor and manage its DSO to ensure efficient cash flow and timely collection of outstanding receivables. Further analysis of the underlying factors influencing these fluctuations could provide valuable insights into the company's financial performance and operational efficiency.
Peer comparison
Sep 30, 2024