Helmerich and Payne Inc (HP)

Fixed asset turnover

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
Revenue (ttm) US$ in thousands 2,756,607 2,722,420 2,748,652 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
Property, plant and equipment US$ in thousands 3,016,280 3,014,340 2,993,820 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
Fixed asset turnover 0.91 0.90 0.92 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

September 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,756,607K ÷ $3,016,280K
= 0.91

The fixed asset turnover ratio is a measure of a company's efficiency in generating sales from its investments in fixed assets. Helmerich and Payne Inc's fixed asset turnover has fluctuated over the past several quarters. In the most recent quarter, ending September 30, 2024, the fixed asset turnover ratio was 0.91, indicating that the company generated $0.91 in sales for every dollar invested in fixed assets.

The trend in fixed asset turnover shows some variation, with the ratio ranging from 0.32 to 0.98 over the past eight quarters. The highest ratio of 0.98 was recorded in the quarter ending September 30, 2023, while the lowest ratio of 0.32 was observed in the quarter ending March 31, 2021.

Overall, a higher fixed asset turnover ratio suggests better asset utilization and efficiency in generating sales. It is important for investors and stakeholders to monitor this ratio over time to assess the company's performance in effectively utilizing its fixed assets to drive revenue generation.


Peer comparison

Sep 30, 2024

Company name
Symbol
Fixed asset turnover
Helmerich and Payne Inc
HP
0.91
Nabors Industries Ltd
NBR
0.97
Patterson-UTI Energy Inc
PTEN
1.23
Valaris Ltd
VAL
1.09