Helmerich and Payne Inc (HP)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,872,420 | 2,058,940 | 1,218,570 | 1,773,930 | 2,798,490 |
| Property, plant and equipment | US$ in thousands | 2,921,700 | 2,960,810 | 3,127,290 | 3,646,340 | 4,502,080 |
| Fixed asset turnover | 0.98 | 0.70 | 0.39 | 0.49 | 0.62 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,872,420K ÷ $2,921,700K
= 0.98
The fixed asset turnover ratio measures the efficiency with which a company utilizes its fixed assets to generate sales. A higher ratio indicates better utilization of fixed assets.
Looking at the trend for Helmerich & Payne, Inc., the fixed asset turnover ratio has shown fluctuations over the past five years. In 2023, the ratio stands at 0.98, which is a notable improvement from the previous year's 0.70.
This suggests that the company has been more effective in generating sales relative to its investment in fixed assets in 2023. It is important to note that the ratio has significantly improved from 0.39 in 2021, indicating a considerable enhancement in the utilization of fixed assets over the past two years.
It is encouraging to see the company's effort in efficiently managing its fixed assets to generate more sales, as this can lead to improved profitability and operational performance. However, it will be important to monitor this trend in the coming years to understand if this improvement is sustainable.
Peer comparison
Sep 30, 2023