Helmerich and Payne Inc (HP)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 217,341 | 257,174 | 232,131 | 917,534 | 487,884 |
| Short-term investments | US$ in thousands | 292,919 | 93,600 | 117,101 | 198,700 | 89,335 |
| Total current liabilities | US$ in thousands | 446,949 | 418,931 | 394,810 | 866,306 | 219,136 |
| Cash ratio | 1.14 | 0.84 | 0.88 | 1.29 | 2.63 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($217,341K
+ $292,919K)
÷ $446,949K
= 1.14
The cash ratio of Helmerich and Payne Inc has shown fluctuations over the past five years. The ratio was at its highest in 2020 at 2.63, indicating that the company had $2.63 in cash and cash equivalents for every dollar of current liabilities. However, the ratio has declined steadily since then, reaching its lowest point in 2023 at 0.84. This suggests that the company had $0.84 in cash and cash equivalents for every dollar of current liabilities in that year.
In 2024, the cash ratio improved to 1.14, indicating a better liquidity position compared to the previous year. A cash ratio above 1 implies that the company has sufficient liquid assets to cover its short-term obligations. However, it is important to note that a very high cash ratio may also indicate that the company is not efficiently utilizing its cash resources.
Overall, the trend in Helmerich and Payne Inc's cash ratio suggests some fluctuations in its liquidity position over the years, with the company having varying levels of ability to meet its short-term obligations with its available cash and cash equivalents.
Peer comparison
Sep 30, 2024