Helmerich and Payne Inc (HP)
Total asset 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 |
| Total assets | US$ in thousands | 5,781,900 | 4,381,960 | 4,355,530 | 5,034,130 | 4,829,620 |
| Total asset turnover | 0.48 | 0.66 | 0.47 | 0.24 | 0.37 |
September 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,756,610K ÷ $5,781,900K
= 0.48
Total asset turnover measures how efficiently a company generates sales from its total assets. A higher total asset turnover ratio indicates better asset utilization. Looking at the data provided for Helmerich and Payne Inc, we observe fluctuations in total asset turnover over the past five years.
In 2024, the total asset turnover ratio was 0.48, indicating that for every dollar of assets, the company generated $0.48 in sales. This shows a decrease from the previous year when the ratio was 0.66. The decline suggests a decrease in efficiency in generating sales from assets.
In 2022, the total asset turnover ratio was 0.47, lower compared to 2023, indicating that the company struggled to utilize its assets efficiently to generate revenue. This was followed by a significant improvement in 2021, where the company achieved a total asset turnover of 0.24, signaling a notable increase in asset productivity.
However, in 2020, the total asset turnover ratio was 0.37, reflecting a decrease in efficiency compared to 2021. Overall, the trend in total asset turnover for Helmerich and Payne Inc has been somewhat inconsistent, with varying levels of asset utilization efficiency over the past five years. Further analysis would be needed to understand the underlying factors driving these fluctuations and to determine the company's overall asset management effectiveness.
Peer comparison
Sep 30, 2024