Helmerich and Payne Inc (HP)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 19.32 | 17.68 | 18.99 | 19.20 | 18.66 | 19.65 | 20.85 | 21.98 | 24.00 | 25.17 | 30.37 | 33.97 | 20.92 | 19.56 | 11.50 | 11.37 | 20.63 | 24.44 | 144.25 | 372.19 |
| Days of sales outstanding (DSO) | days | 56.21 | 51.36 | 57.70 | 71.84 | 79.00 | 81.32 | 81.98 | 77.44 | 74.58 | 68.56 | 78.74 | 71.55 | 60.66 | 39.63 | 49.80 | 75.05 | 68.42 | 64.64 | 65.17 | 71.87 |
| Number of days of payables | days | 29.97 | 24.56 | 28.43 | 30.92 | 29.97 | 28.36 | 29.05 | 27.65 | 29.98 | 21.56 | 21.53 | 22.51 | 9.81 | 6.85 | 3.68 | 14.64 | 17.01 | 7.41 | 128.83 | 301.21 |
| Cash conversion cycle | days | 45.56 | 44.49 | 48.26 | 60.12 | 67.68 | 72.61 | 73.78 | 71.78 | 68.60 | 72.17 | 87.58 | 83.02 | 71.77 | 52.35 | 57.62 | 71.78 | 72.04 | 81.67 | 80.59 | 142.85 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 19.32 + 56.21 – 29.97
= 45.56
The cash conversion cycle for Helmerich & Payne, Inc. has fluctuated over the past eight quarters. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
The trend indicates that the company's efficiency in managing its working capital and operational cycle has varied. A lower number of days is generally preferred, as it suggests that the company is managing its inventory well and collecting receivables promptly, thereby converting sales into cash quickly.
The cycle was at its lowest at 51.36 days in September 2023, indicating a more efficient utilization of resources and quicker conversion of sales to cash. However, the cycle increased to 79.00 days by the end of December 2022, reflecting a potentially slower collection of receivables or management of inventory during that period.
This fluctuation suggests that Helmerich & Payne, Inc. may have experienced challenges in managing its working capital efficiently over the analyzed period. It would be important for the company to analyze the reasons behind these fluctuations and take measures to improve its cash conversion cycle, as this can have implications for its liquidity and overall financial health.
Peer comparison
Dec 31, 2023