Helmerich and Payne Inc (HP)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,829,931 | 2,872,421 | 2,844,147 | 2,670,424 | 2,368,799 | 2,058,944 | 1,771,419 | 1,553,399 | 1,381,973 | 1,218,568 | 1,083,028 | 1,068,179 | 1,405,647 | 1,773,927 | 2,214,710 | 2,585,320 | 2,672,549 | 2,798,490 | 2,846,265 | 2,807,163 |
| Property, plant and equipment | US$ in thousands | 2,970,370 | 2,921,700 | 2,932,590 | 2,931,300 | 2,942,060 | 2,960,810 | 2,987,110 | 3,022,340 | 3,066,330 | 3,127,290 | 3,281,080 | 3,374,240 | 3,552,110 | 3,646,340 | 3,754,210 | 3,840,210 | 4,412,360 | 4,502,080 | 4,583,670 | 4,886,950 |
| Fixed asset turnover | 0.95 | 0.98 | 0.97 | 0.91 | 0.81 | 0.70 | 0.59 | 0.51 | 0.45 | 0.39 | 0.33 | 0.32 | 0.40 | 0.49 | 0.59 | 0.67 | 0.61 | 0.62 | 0.62 | 0.57 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,829,931K ÷ $2,970,370K
= 0.95
The fixed asset turnover ratio measures a company's ability to generate sales from its fixed assets. It is calculated by dividing net sales by average fixed assets. A higher ratio indicates that the company is utilizing its fixed assets more efficiently to generate sales.
Based on the data provided for Helmerich & Payne, Inc., the fixed asset turnover ratio has been fluctuating over the past eight quarters. The ratio ranged from 0.51 to 0.98, showing variability in the company's ability to generate sales from its fixed assets.
In the latter half of 2022 and the first half of 2023, the fixed asset turnover ratio showed a significant improvement, reaching 0.98 in September 2023. This may indicate that the company was able to generate more sales relative to its investment in fixed assets during this period.
However, it is noteworthy that the ratio decreased to 0.91 in March 2023 and further dropped to 0.95 in December 2023. The declining trend suggests that the company may be experiencing challenges in effectively utilizing its fixed assets to drive sales.
Overall, the fluctuating trend in the fixed asset turnover ratio indicates the need for Helmerich & Payne, Inc. to evaluate and potentially optimize its utilization of fixed assets to enhance sales generation efficiency and improve overall operational performance.
Peer comparison
Dec 31, 2023