Helmerich and Payne Inc (HP)
Days of sales outstanding (DSO)
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 6.59 | 6.55 | 6.37 | 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 | |
| DSO | days | 55.43 | 55.69 | 57.32 | 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 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.59
= 55.43
The Days Sales Outstanding (DSO) ratio for Helmerich and Payne Inc has shown fluctuations over the past several quarters, indicating variations in the company's collections efficiency. The DSO measures how long it takes for a company to collect its accounts receivable.
In the most recent quarter, the DSO stood at 55.43 days, slightly lower than the previous quarter's 55.69 days. This may suggest that the company has been able to improve its collection process and shorten the time it takes to convert sales into cash.
Comparing the current DSO to historical data, we observe that the DSO has generally been within a range of 50 to 80 days over the past few years. The significant spike in DSO to 79.00 days in the fourth quarter of 2022 and 81.32 days in the first quarter of 2023 raises concerns about the company's ability to efficiently collect outstanding receivables during those periods.
The lower DSO values observed in the most recent quarters can be seen as a positive trend, indicating potential improvements in the company's credit policies, collections procedures, or customer payment behaviors. However, continuous monitoring of the DSO ratio is essential to ensure that the company maintains effective receivables management and liquidity levels.
Peer comparison
Sep 30, 2024