Helmerich and Payne Inc (HP)
Total asset 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 |
| Total assets | US$ in thousands | 4,381,960 | 4,355,530 | 5,034,130 | 4,829,620 | 5,839,520 |
| Total asset turnover | 0.66 | 0.47 | 0.24 | 0.37 | 0.48 |
September 30, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,872,420K ÷ $4,381,960K
= 0.66
The total asset turnover ratio measures a company's ability to generate sales from its assets. In the case of Helmerich & Payne, Inc., the total asset turnover has fluctuated significantly over the past five years.
In 2023, the ratio stands at 0.66, representing a substantial increase from the previous year's 0.47. This suggests that the company generated $0.66 in revenue for every dollar of assets in 2023. This improvement indicates that Helmerich & Payne, Inc. has been more effective in utilizing its assets to drive sales.
However, when comparing 2023 to 2019, it's noteworthy that the total asset turnover was at its highest at 0.48 in 2019, before declining to 0.24 in 2021. This may indicate a period of underperformance in asset utilization, which was then followed by a stark recovery in 2023.
Overall, the fluctuation in the total asset turnover ratio for Helmerich & Payne, Inc. suggests varying levels of efficiency in utilizing its assets to generate revenue over the past five years. This emphasizes the importance of closely monitoring and analyzing changes in asset turnover to gauge the company's operational effectiveness.
Peer comparison
Sep 30, 2023