Helmerich and Payne Inc (HP)

Activity ratios

Short-term

Turnover ratios

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 18.89 20.64 19.22 19.01 19.56 18.58 17.51 16.60 15.21 14.50 12.02 10.74 17.45 18.66 31.74 32.10 17.69 14.94 2.53 0.98
Receivables turnover 6.49 7.11 6.33 5.08 4.62 4.49 4.45 4.71 4.89 5.32 4.64 5.10 6.02 9.21 7.33 4.86 5.33 5.65 5.60 5.08
Payables turnover 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 49.25 2.83 1.21
Working capital turnover 5.45 4.89 5.08 4.52 3.89 3.39 3.25 2.87 2.49 1.69 1.51 1.47 1.94 2.38 2.96 3.48 3.63 3.97 3.92 4.16

The activity ratios of Helmerich & Payne, Inc. provide insights into the efficiency of the company's operations. The inventory turnover ratio is consistently reported as 0, indicating that the company is not effectively managing its inventory to generate sales. This could be a sign of overstocking or slow-moving inventory.

On the other hand, the receivables turnover ratio shows a positive trend, increasing from 4.45 in March 2022 to 6.49 in December 2023. This suggests that the company is collecting receivables more efficiently, which is a positive indicator of its ability to manage credit sales and collect payments from customers.

The payables turnover ratio remains consistently at 0, indicating that the company is not effectively managing its payables turnover, and may not be taking advantage of potential discounts for early payments or may not have efficient payment terms with its suppliers.

The working capital turnover ratio also shows a positive trend, increasing from 2.87 in March 2022 to 5.45 in December 2023, indicating that the company is generating sales more efficiently relative to its working capital. This is a positive sign of improved working capital management.

Overall, there are indications of efficiency improvements in managing receivables and working capital, but inventory and payables turnover need attention to improve the company's overall operational efficiency.

Average number of days

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 19.32 17.68 18.99 19.20 18.66 19.65 20.85 21.98 24.00 25.17 30.37 33.97 20.92 19.56 11.50 11.37 20.63 24.44 144.25 372.19
Days of sales outstanding (DSO) days 56.21 51.36 57.70 71.84 79.00 81.32 81.98 77.44 74.58 68.56 78.74 71.55 60.66 39.63 49.80 75.05 68.42 64.64 65.17 71.87
Number of days of payables days 29.97 24.56 28.43 30.92 29.97 28.36 29.05 27.65 29.98 21.56 21.53 22.51 9.81 6.85 3.68 14.64 17.01 7.41 128.83 301.21

To analyze Helmerich & Payne, Inc.'s activity ratios, we will focus on the days of sales outstanding (DSO) data. DSO measures the average number of days it takes a company to collect on its sales from customers. A lower DSO indicates that the company is able to collect its accounts receivable more quickly, which is generally a positive sign.

Looking at the DSO figures over the past eight quarters, we can observe a downward trend from Q1 2023 to Q4 2022, indicating an improvement in the company's accounts receivable collection process. This may suggest that Helmerich & Payne, Inc. has become more efficient in collecting payments from its customers, which can positively impact its cash flow and overall liquidity.

However, it is important to note that the DSO figure has fluctuated over the quarters, reaching a peak of 81.98 days in Q2 2022 before decreasing in subsequent quarters. This variability may warrant further investigation into the company's credit policies, customer base, and collection methods to understand the underlying reasons for these fluctuations in the DSO.

In contrast, the days of inventory on hand (DOH) and the number of days of payables data are not available, making it challenging to assess the company's inventory management and payment terms with suppliers. Additional information on these metrics would be necessary to provide a comprehensive analysis of Helmerich & Payne, Inc.'s activity ratios.

In conclusion, while the DSO trend suggests an improvement in accounts receivable management, further data on inventory and payables would be beneficial to gain a holistic understanding of the company's working capital management and efficiency in its operational activities.

Long-term

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 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 0.62 0.62 0.57
Total asset turnover 0.64 0.66 0.66 0.61 0.54 0.47 0.41 0.36 0.31 0.24 0.24 0.23 0.30 0.37 0.45 0.50 0.46 0.48 0.48 0.46

The fixed asset turnover ratio for Helmerich & Payne, Inc. has shown an increasing trend over the past eight quarters, indicating an improvement in the company's ability to generate sales from its fixed assets. This suggests that the company's investments in long-term assets are becoming more productive.

Similarly, the total asset turnover ratio has also shown an increasing trend over the same period. This indicates that the company is generating more sales in relation to its total assets, reflecting efficient asset utilization and potentially indicating improved operational efficiency.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios suggests that Helmerich & Payne, Inc. has been effectively utilizing its long-term assets to generate sales and improve operational efficiency over the past two years.