Helmerich and Payne Inc (HP)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,900,967 | 1,883,164 | 1,877,578 | 1,915,817 | 1,944,929 | 1,947,226 | 1,890,166 | 1,775,204 | 1,634,187 | 1,507,225 | 1,387,940 | 1,327,313 | 1,218,770 | 1,088,084 | 1,036,842 | 1,733,748 | 1,944,038 | 3,588,138 | 3,609,921 | 2,630,377 |
| Payables | US$ in thousands | 135,084 | 158,896 | 158,296 | 157,302 | 130,852 | 151,671 | 160,101 | 145,784 | 126,966 | 119,972 | 105,123 | 109,032 | 71,996 | 64,193 | 63,934 | 46,617 | 36,468 | 36,181 | 144,794 | 122,609 |
| Payables turnover | 14.07 | 11.85 | 11.86 | 12.18 | 14.86 | 12.84 | 11.81 | 12.18 | 12.87 | 12.56 | 13.20 | 12.17 | 16.93 | 16.95 | 16.22 | 37.19 | 53.31 | 99.17 | 24.93 | 21.45 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,900,967K ÷ $135,084K
= 14.07
Over the past several quarters, Helmerich and Payne Inc's payables turnover ratio has exhibited some fluctuations. The payables turnover ratio measures how many times a company pays off its accounts payable during a specific period, indicating the efficiency of the company in managing its short-term liabilities.
Looking at the trend in the payables turnover ratio, we can observe that the ratio has generally been in the range of 11 to 16 times over the past few quarters, with occasional spikes. However, in the most recent quarter, the payables turnover ratio significantly increased to 14.07, indicating that the company is paying off its accounts payable more frequently compared to previous quarters.
The significant fluctuations and spikes in the payables turnover ratio suggest that there may be changes in the company's payment terms with its suppliers or variations in the company's operating cycle. A high payables turnover ratio, such as the one observed in the fourth quarter of 2020 and first quarter of 2021, may indicate that the company is efficiently managing its accounts payable and able to quickly settle its short-term obligations.
Overall, it is important for investors and analysts to closely monitor the payables turnover ratio along with other financial ratios to gain a comprehensive understanding of Helmerich and Payne Inc's liquidity, efficiency, and financial performance over time.
Peer comparison
Sep 30, 2024