Helmerich and Payne Inc (HP)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,900,970 | 1,944,930 | 1,634,190 | 1,217,360 | 1,947,560 |
| Inventory | US$ in thousands | 117,884 | 94,227 | 87,957 | 84,057 | 104,180 |
| Inventory turnover | 16.13 | 20.64 | 18.58 | 14.48 | 18.69 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,900,970K ÷ $117,884K
= 16.13
Inventory turnover is a financial ratio that measures how many times a company's inventory is sold and replaced over a specific period. Helmerich and Payne Inc's inventory turnover has fluctuated over the past five years, with values of 16.13 in 2024, 20.64 in 2023, 18.58 in 2022, 14.48 in 2021, and 18.69 in 2020.
A higher inventory turnover ratio is generally preferred as it indicates that the company is efficiently managing its inventory by quickly selling and replenishing it. A lower ratio may suggest slower sales or inefficient inventory management.
In the case of Helmerich and Payne Inc, the trend in inventory turnover shows some variability, with significant fluctuations from year to year. While the company's inventory turnover was highest in 2023, indicating efficient inventory management and quicker sales turnover, it experienced a dip in 2021. However, it rebounded in 2022 and remained relatively stable in 2024.
Overall, the trend in Helmerich and Payne Inc's inventory turnover suggests varying levels of efficiency in managing its inventory over the past five years. It is important for the company to further analyze the reasons behind these fluctuations and work towards optimizing its inventory management processes to ensure consistent performance in the future.
Peer comparison
Sep 30, 2024