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