Helmerich and Payne Inc (HP)
Working capital 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 current assets | US$ in thousands | 1,192,070 | 1,006,620 | 1,002,940 | 1,586,570 | 963,327 |
| Total current liabilities | US$ in thousands | 446,949 | 418,931 | 394,810 | 866,306 | 219,136 |
| Working capital turnover | 3.70 | 4.89 | 3.39 | 1.69 | 2.38 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,756,610K ÷ ($1,192,070K – $446,949K)
= 3.70
Helmerich and Payne Inc's working capital turnover has exhibited fluctuations over the past five years. The working capital turnover ratio shows how efficiently the company is utilizing its working capital to generate revenue. A higher ratio indicates a more efficient utilization of working capital.
In 2024, the working capital turnover ratio decreased to 3.70 from 4.89 in 2023. This decrease could suggest that the company's efficiency in generating revenue from its working capital declined during the year.
In 2023, the ratio was at its highest at 4.89, which indicates that the company efficiently turned over its working capital into revenue. This could imply effective management of working capital resources during that year.
In comparison, the working capital turnover ratio was 3.39 in 2022, 1.69 in 2021, and 2.38 in 2020. These lower ratios in those years suggest that the company may have faced challenges in efficiently utilizing its working capital to generate revenue.
Overall, the trend in Helmerich and Payne Inc's working capital turnover indicates variability in how effectively the company is managing its working capital resources to generate sales revenue. Further analysis may be needed to understand the factors driving these fluctuations and to assess the company's overall financial health.
Peer comparison
Sep 30, 2024