Helmerich and Payne Inc (HP)
Working capital turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 2,798,490 | 2,846,265 | 2,807,163 |
| Total current assets | US$ in thousands | 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 | 1,115,090 | 1,116,240 | 1,048,000 |
| Total current liabilities | US$ in thousands | 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 | 410,238 | 390,526 | 373,707 |
| Working capital turnover | 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 | 3.97 | 3.92 | 4.16 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,829,931K ÷ ($988,680K – $468,986K)
= 5.45
The working capital turnover of Helmerich & Payne, Inc. has shown a consistent upward trend over the past eight quarters, indicating an improvement in the efficiency of the company's working capital management. The ratio has increased from 2.87 in March 2022 to 5.45 in December 2023. This suggests that the company is generating revenue at a faster rate relative to the working capital used.
A higher working capital turnover ratio is generally favorable as it implies that the company is effectively utilizing its working capital to support sales and operations. This can be an indication of strong operational efficiency and effective management of current assets and liabilities.
It is important to note that while the increasing trend is positive, further analysis of the company's specific industry, peer benchmarks, and historical performance would provide deeper insights into the overall effectiveness of the working capital management.
Peer comparison
Dec 31, 2023