Helmerich and Payne Inc (HP)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,872,420 | 2,058,940 | 1,218,570 | 1,773,930 | 2,798,490 |
| Receivables | US$ in thousands | 404,188 | 458,713 | 228,894 | 192,623 | 495,602 |
| Receivables turnover | 7.11 | 4.49 | 5.32 | 9.21 | 5.65 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,872,420K ÷ $404,188K
= 7.11
The receivables turnover ratio measures how efficiently a company is managing its receivables by comparing the sales generated to the amount of receivables outstanding. Helmerich & Payne, Inc.'s receivables turnover has shown fluctuation over the past five years.
In 2023, the receivables turnover ratio of 7.11 indicates that the company collected its outstanding receivables approximately 7.11 times during the year. This is an improvement from 2022 when the ratio was 4.49. The increase in the turnover ratio suggests that the company has become more efficient in collecting its receivables compared to the previous year, which could be attributed to better credit policies, improved collection efforts, or a change in customer payment behavior.
When compared to 2021 and 2019, the receivables turnover ratio has also shown improvement, indicating a positive trend in the management of receivables during those years. However, in 2020, the ratio was substantially higher at 9.21, suggesting that the company was collecting its receivables more frequently that year.
Overall, the fluctuation in the receivables turnover ratio over the years may be due to changes in the company's sales and credit policies, as well as shifts in customer payment patterns. This ratio provides insights into the efficiency of Helmerich & Payne, Inc.'s management of receivables and their ability to convert credit sales into cash.
Peer comparison
Sep 30, 2023