Helmerich and Payne Inc (HP)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 6.49 | 7.11 | 6.33 | 5.08 | 4.62 | 4.49 | 4.45 | 4.71 | 4.89 | 5.32 | 4.64 | 5.10 | 6.02 | 9.21 | 7.33 | 4.86 | 5.33 | 5.65 | 5.60 | 5.08 | |
| DSO | days | 56.21 | 51.36 | 57.70 | 71.84 | 79.00 | 81.32 | 81.98 | 77.44 | 74.58 | 68.56 | 78.74 | 71.55 | 60.66 | 39.63 | 49.80 | 75.05 | 68.42 | 64.64 | 65.17 | 71.87 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.49
= 56.21
Days Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO indicates that the company is collecting payments more quickly, which can be a sign of efficiency and strong cash flow management.
Analyzing the DSO trend for Helmerich & Payne, Inc. from March 2022 to December 2023, we observe fluctuations in the DSO figures. The DSO decreased from 79.00 days in December 2022 to 56.21 days in December 2023, reflecting a significant improvement in the collection of receivables over the year.
This decline in DSO suggests that Helmerich & Payne, Inc. has been able to collect receivables more efficiently during this period. A lower DSO can signal effective credit and collection policies, potentially indicating improved liquidity and working capital management. It may also reflect the company's ability to maintain strong customer relationships and enforce timely payment terms.
However, it is worth noting the slight uptick in DSO from September 2023 (51.36 days) to June 2023 (57.70 days), which could indicate a temporary slowdown in collections, potentially requiring further investigation into the company's credit and collection processes during that period.
Overall, the declining trend in DSO from December 2022 to December 2023 suggests that Helmerich & Payne, Inc. has been successful in improving its receivables management and collection efficiency, which can have positive implications for its financial health and operational performance.
Peer comparison
Dec 31, 2023