Helmerich and Payne Inc (HP)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,756,610 | 2,872,420 | 2,058,940 | 1,218,570 | 1,773,930 |
| Receivables | US$ in thousands | 418,604 | 404,188 | 458,713 | 228,894 | 192,623 |
| Receivables turnover | 6.59 | 7.11 | 4.49 | 5.32 | 9.21 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,756,610K ÷ $418,604K
= 6.59
The receivables turnover ratio for Helmerich and Payne Inc has shown fluctuating trends over the past five years. In 2024, the receivables turnover ratio was 6.59, indicating that the company collected its accounts receivable approximately 6.59 times during the year. This ratio decreased compared to the previous year's ratio of 7.11 in 2023.
The decrease in the turnover ratio could suggest that the company took longer to collect its accounts receivable in 2024 compared to 2023. However, it is essential to consider the industry standards and company-specific factors when interpreting this change.
Looking back at previous years, the receivables turnover ratio was lower in 2022 at 4.49 but then improved in 2023 before decreasing again in 2024. The significant increase in 2020 to 9.21 indicates a strong performance in receivables turnover that year.
It is important for stakeholders to further investigate the reasons behind the fluctuations in the receivables turnover ratio to determine if any underlying issues exist in the company's credit policies, collection practices, or customer base.
Peer comparison
Sep 30, 2024