Helmerich and Payne Inc (HP)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 16.13 16.33 17.51 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
Receivables turnover 6.59 6.55 6.37 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
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
Working capital turnover 3.70 5.30 5.39 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

Helmerich and Payne Inc's activity ratios provide insights into how effectively the company is managing its operations and resources.

1. Inventory turnover: The company has consistently maintained a high inventory turnover ratio, indicating efficient management of inventory levels. The ratio has ranged from 10.74 to 32.10 over the past few quarters, with a decreasing trend in recent periods. This suggests that the company is selling its inventory more quickly.

2. Receivables turnover: The receivables turnover ratio reflects the efficiency of the company in collecting outstanding receivables. Helmerich and Payne Inc's ratio has ranged from 4.08 to 8.21, showing variations in the speed of collecting payments from customers. The ratio has seen fluctuations but has generally been stable over time.

3. Payables turnover: The payables turnover ratio measures how quickly the company pays its suppliers. Helmerich and Payne Inc's ratio has ranged from 11.81 to 99.17, indicating varying payment terms with suppliers. The ratio has shown fluctuation but has been relatively stable in recent quarters.

4. Working capital turnover: This ratio assesses how efficiently the company utilizes its working capital to generate sales revenue. Helmerich and Payne Inc's ratio has ranged from 1.47 to 5.45, indicating fluctuations in the efficiency of working capital utilization. The ratio has shown some variability over time.

Overall, these activity ratios suggest that Helmerich and Payne Inc has been effectively managing its inventory, receivables, payables, and working capital, albeit with some fluctuations in efficiency levels. Tracking these ratios can help stakeholders evaluate the company's operational performance and financial health over time.

Average number of days

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
Days of inventory on hand (DOH) days 22.63 22.35 20.84 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
Days of sales outstanding (DSO) days 55.43 55.69 57.32 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
Number of days of payables days 25.94 30.80 30.77 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

The Days of Inventory on Hand (DOH) for Helmerich and Payne Inc have fluctuated over the past few quarters, with the trend generally increasing from around 17.68 days in September 2020 to approximately 22.63 days in September 2024. This suggests that the company has been holding onto its inventory for slightly longer periods.

In contrast, the Days of Sales Outstanding (DSO) have also shown variability, peaking at 81.98 days in June 2022 and then reducing to 55.43 days in September 2024. This indicates that the company has improved its efficiency in collecting payments from customers since June 2022.

The Number of Days of Payables has seen fluctuations as well, ranging from a low of 3.68 days in December 2019 to a high of 30.80 days in June 2024. This might suggest changes in the company's payment terms with suppliers over time.

Overall, these activity ratios provide insights into Helmerich and Payne Inc's management of its inventory, receivables, and payables, which are crucial for assessing the company's operational efficiency and cash flow management. Keep in mind that these ratios should be analyzed in conjunction with other financial metrics for a comprehensive evaluation of the company's performance.

Long-term

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
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
Total asset turnover 0.48 0.61 0.62 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

The fixed asset turnover ratio for Helmerich and Payne Inc has been relatively stable over the past few quarters, ranging from 0.39 to 0.98. This ratio indicates the company's ability to generate revenue from its investment in fixed assets. A higher ratio is generally desirable as it suggests that the company is efficiently utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has shown more variability, fluctuating between 0.23 and 0.66. This ratio reflects how efficiently the company is using all its assets to generate sales. A higher total asset turnover ratio indicates that the company is effectively using its assets to generate revenue.

Overall, both ratios indicate that Helmerich and Payne Inc has been able to generate sales from its assets, but there may be room for improvement in terms of efficiently utilizing fixed assets to drive revenue. It is essential for the company to continue monitoring and optimizing its asset turnover ratios to ensure long-term financial health and operational efficiency.