Helmerich and Payne Inc (HP)
Working capital turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,756,607 | 2,722,420 | 2,748,652 | 2,829,931 | 2,872,421 | 2,844,147 | 2,670,424 | 2,368,799 | 2,058,944 | 1,771,419 | 1,553,399 | 1,381,973 | 1,218,568 | 1,083,028 | 1,068,179 | 1,405,647 | 1,773,927 | 2,214,710 | 2,585,320 | 2,672,549 |
| Total current assets | US$ in thousands | 1,192,070 | 970,319 | 948,780 | 988,680 | 1,006,620 | 992,828 | 1,004,450 | 1,078,610 | 1,002,940 | 946,158 | 918,496 | 954,694 | 1,586,570 | 983,543 | 978,573 | 952,724 | 963,327 | 990,544 | 1,120,120 | 1,154,640 |
| Total current liabilities | US$ in thousands | 446,949 | 456,792 | 438,837 | 468,986 | 418,931 | 433,496 | 413,721 | 469,571 | 394,810 | 401,276 | 377,598 | 398,976 | 866,306 | 265,301 | 251,603 | 228,261 | 219,136 | 242,167 | 377,419 | 419,347 |
| Working capital turnover | 3.70 | 5.30 | 5.39 | 5.45 | 4.89 | 5.08 | 4.52 | 3.89 | 3.39 | 3.25 | 2.87 | 2.49 | 1.69 | 1.51 | 1.47 | 1.94 | 2.38 | 2.96 | 3.48 | 3.63 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,756,607K ÷ ($1,192,070K – $446,949K)
= 3.70
Helmerich and Payne Inc's working capital turnover has shown fluctuations over the past few years. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. A higher ratio indicates that the company is able to efficiently manage its working capital to support sales growth.
From December 2019 to September 2020, the working capital turnover ratio increased from 1.94 to 3.63, indicating significant improvement in the efficiency of working capital management. This trend continued until March 2021, where the ratio peaked at 5.39, reflecting an even higher level of efficiency.
However, from March 2021 to September 2022, the working capital turnover ratio gradually decreased, suggesting potential challenges in maintaining the same level of efficiency in managing working capital. The ratio hit its lowest point at 1.51 in June 2021, possibly indicating some inefficiencies in the company's working capital management during that period.
From September 2022 onwards, there was a slight recovery in the ratio, reflecting improved efficiency compared to the previous quarters. The ratio ranged between 2.87 to 3.70 from September 2022 to September 2024, indicating a moderate level of efficiency in utilizing working capital to support sales.
Overall, the trend in Helmerich and Payne Inc's working capital turnover suggests fluctuations in the efficiency of working capital management over the analyzed periods, with both improvements and challenges noted.
Peer comparison
Sep 30, 2024