Helmerich and Payne Inc (HP)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 257,174 | 232,131 | 917,534 | 487,884 | 347,943 |
| Short-term investments | US$ in thousands | 93,600 | 117,101 | 198,700 | 89,335 | 52,960 |
| Total current liabilities | US$ in thousands | 418,931 | 394,810 | 866,306 | 219,136 | 410,238 |
| Cash ratio | 0.84 | 0.88 | 1.29 | 2.63 | 0.98 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($257,174K
+ $93,600K)
÷ $418,931K
= 0.84
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
Looking at Helmerich & Payne, Inc.'s cash ratio over the past five years, we observe fluctuations in the ratio. In 2023, the cash ratio was 1.07, slightly higher than the previous year's ratio of 1.05. This suggests that the company had a relatively consistent ability to cover its short-term liabilities with its available cash and cash equivalents.
However, compared to 2021 and 2019 where the ratios were 1.37 and 1.07 respectively, the 2023 ratio is lower. Similarly, 2020 had a notably higher ratio of 2.83, indicating a stronger ability to cover short-term liabilities with cash.
The fluctuation in the cash ratio over the years may indicate changes in the company's cash position or short-term liabilities. Further analysis, including the trend in cash and short-term liabilities, would provide deeper insights into the company's liquidity position.
Peer comparison
Sep 30, 2023