Helmerich and Payne Inc (HP)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,756,610 | 2,872,420 | 2,058,940 | 1,218,570 | 1,773,930 |
| Property, plant and equipment | US$ in thousands | 3,016,280 | 2,921,700 | 2,960,810 | 3,127,290 | 3,646,340 |
| Fixed asset turnover | 0.91 | 0.98 | 0.70 | 0.39 | 0.49 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,756,610K ÷ $3,016,280K
= 0.91
The fixed asset turnover ratio measures how efficiently a company is generating sales from its fixed assets. A higher fixed asset turnover indicates that the company is using its fixed assets more efficiently to generate revenue.
In the case of Helmerich and Payne Inc, the fixed asset turnover ratio has fluctuated over the past five years. In 2024, the ratio was 0.91, indicating that the company generated $0.91 in sales for every $1 invested in fixed assets. This is a slight decrease from 2023, where the ratio was 0.98.
While the ratio has been fluctuating, it is important to note that the ratios are relatively low, indicating that Helmerich and Payne Inc may not be efficiently utilizing its fixed assets to generate sales compared to previous years. The lower ratios in 2021 and 2020 (0.39 and 0.49, respectively) may suggest potential inefficiencies or underutilization of fixed assets within the company during those periods.
Overall, the trend in the fixed asset turnover ratio for Helmerich and Payne Inc shows some variability, indicating potential changes in the company's asset utilization efficiency over the years. This ratio should be monitored closely to assess the company's performance in utilizing its fixed assets effectively to generate revenue.
Peer comparison
Sep 30, 2024