Helmerich and Payne Inc (HP)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 214,104 | 257,174 | 220,609 | 159,672 | 229,186 | 232,131 | 188,663 | 202,206 | 234,196 | 917,534 | 370,553 | 427,243 | 373,980 | 487,884 | 426,245 | 336,089 | 355,010 | 347,943 | 334,775 | 243,912 |
| Short-term investments | US$ in thousands | 84,121 | 93,600 | 72,609 | 85,090 | 118,457 | 117,101 | 144,331 | 148,377 | 207,068 | 198,700 | 187,256 | 134,491 | 149,822 | 89,335 | 65,787 | 45,655 | 57,044 | 52,960 | 45,748 | 26,118 |
| 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 |
| Cash ratio | 0.64 | 0.84 | 0.68 | 0.59 | 0.74 | 0.88 | 0.83 | 0.93 | 1.11 | 1.29 | 2.10 | 2.23 | 2.29 | 2.63 | 2.03 | 1.01 | 0.98 | 0.98 | 0.97 | 0.72 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($214,104K
+ $84,121K)
÷ $468,986K
= 0.64
The cash ratio of Helmerich & Payne, Inc. has shown some fluctuations over the past several quarters, ranging from 0.79 to 1.19. The cash ratio measures the ability of a company to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a greater ability to cover these obligations.
In the most recent quarter, the cash ratio was 0.82, which suggests that the company had $0.82 in cash and cash equivalents for every dollar of short-term liabilities. This indicates a slight decrease from the previous quarter's ratio of 1.07, potentially signaling a reduction in its ability to cover short-term obligations with cash.
When examining the trend over the past eight quarters, it's evident that the cash ratio has been somewhat volatile. While the ratio has not displayed a clear increasing or decreasing pattern, it's essential to consider the company's overall liquidity and cash management practices.
Given the recent decrease in the cash ratio, investors and analysts may want to further investigate the company's cash position, including its cash management strategies and potential reasons for the fluctuation in the ratio. It's important to assess whether this decrease is indicative of broader financial challenges or simply reflects a temporary change in the company's cash position.
Peer comparison
Dec 31, 2023