Helmerich and Payne Inc (HP)
Payables 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 |
| Payables | US$ in thousands | 135,084 | 130,852 | 126,966 | 71,996 | 36,468 |
| Payables turnover | 14.07 | 14.86 | 12.87 | 16.91 | 53.40 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,900,970K ÷ $135,084K
= 14.07
The payables turnover ratio for Helmerich and Payne Inc has shown some fluctuations over the past five years. The ratio was 14.07 in 2024, 14.86 in 2023, 12.87 in 2022, 16.91 in 2021, and 53.40 in 2020.
A higher payables turnover ratio generally indicates that the company is paying its suppliers more frequently within the period. This could be seen as positive as it shows the company is efficiently managing its accounts payable.
The significant decrease in the payables turnover ratio from 2020 to 2021 could suggest that the company changed its payment terms or management of accounts payable during that period. However, the slight fluctuations in the ratio over the subsequent years indicate some variability in the company's payment practices or liquidity position.
It's important to further investigate the reasons behind these fluctuations and assess how they align with the company's overall financial strategy and operating performance.
Peer comparison
Sep 30, 2024