Helmerich and Payne Inc (HP)
Liquidity ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.67 | 2.12 | 2.16 | 2.11 | 2.40 | 2.29 | 2.43 | 2.30 | 2.54 | 2.36 | 2.43 | 2.39 | 1.83 | 3.71 | 3.89 | 4.17 | 4.40 | 4.09 | 2.97 | 2.75 |
| Quick ratio | 2.08 | 1.54 | 1.61 | 1.57 | 1.80 | 1.71 | 1.86 | 1.83 | 2.05 | 1.82 | 1.80 | 1.81 | 1.55 | 2.98 | 3.06 | 3.32 | 3.51 | 3.28 | 2.42 | 2.18 |
| Cash ratio | 1.14 | 0.63 | 0.63 | 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 |
Helmerich and Payne Inc's liquidity ratios exhibit fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has generally been above 2, indicating a strong liquidity position. However, there have been some fluctuations in this ratio with a peak of 4.40 in December 2020 and a low of 1.83 in September 2021.
The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, also shows fluctuations but has generally been above 1, indicating that the company has an adequate ability to meet short-term obligations without relying on inventory. The quick ratio ranged from a high of 3.51 in December 2019 to a low of 1.54 in June 2024.
The cash ratio, which is the most conservative liquidity measure as it only includes cash and cash equivalents, also displays variability but generally remains above 1, indicating that the company has sufficient cash reserves to cover its short-term liabilities. The cash ratio reached a high of 2.63 in December 2019 and a low of 0.59 in March 2023.
Overall, the liquidity ratios of Helmerich and Payne Inc suggest that the company has maintained a sound liquidity position over the quarters, although there have been fluctuations in the specific ratios, highlighting the importance of monitoring liquidity closely.
Additional liquidity measure
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 52.12 | 47.25 | 47.39 | 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 |
The cash conversion cycle of Helmerich and Payne Inc has fluctuated over the past several quarters. It represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates that the company is able to generate cash quickly from its operations.
Looking at the data provided, we can see that the cash conversion cycle has ranged from a low of 44.49 days to a high of 87.58 days over the past eight quarters. In general, the trend has been somewhat volatile, with fluctuations in the cycle occurring quarter to quarter.
A decreasing trend in the cash conversion cycle can indicate improvements in inventory management, efficient accounts receivable collection, or extended payment terms with suppliers. On the other hand, an increasing trend may suggest a slowdown in sales, challenges in managing inventory levels, or difficulties in collecting receivables.
Overall, Helmerich and Payne Inc should continue to monitor and analyze its cash conversion cycle to ensure efficient working capital management and sustainable cash flows in the future.