Helmerich and Payne Inc (HP)

Liquidity ratios

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
Current ratio 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 2.72 2.86 2.80
Quick ratio 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 2.19 2.28 2.20
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

From the data provided, it is evident that Helmerich & Payne, Inc. has maintained a strong liquidity position over the past eight quarters. The current ratio, which measures the company's ability to meet short-term obligations with current assets, has been consistently above 2.0, indicating a healthy level of liquidity. Specifically, the current ratio ranged from 2.11 to 2.54 during this period, with an average of approximately 2.34. This indicates that the company has more than enough current assets to cover its short-term liabilities.

Furthermore, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also shows a consistently robust position. With values ranging from 1.75 to 2.21 and an average of around 2.00, Helmerich & Payne, Inc. maintains a strong ability to meet its short-term obligations without relying on selling inventory.

Additionally, the cash ratio, which focuses on the most liquid assets, has generally been above 1.0, although it has shown some variability over the quarters. The average cash ratio stands at approximately 0.99, indicating that the company has sufficient cash on hand to cover its current liabilities.

Overall, the liquidity ratios reflect a consistently strong financial position for Helmerich & Payne, Inc., with ample liquidity to meet its short-term obligations. This suggests that the company has the ability to fund its ongoing operations, invest in growth opportunities, and weather any unexpected financial challenges.

Additional liquidity measure

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 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

The cash conversion cycle (CCC) of Helmerich & Payne, Inc. has varied over the past eight quarters. The CCC measures the time it takes for a company to convert its investments in inventory and other resources into cash from sales. A shorter CCC indicates efficient management of working capital.

The CCC for the company has fluctuated between 51.36 days and 81.98 days over the observed period. The trend shows some improvement in the most recent quarter, decreasing to 56.21 days compared to the previous quarter. However, it's essential to note that the CCC increased significantly in the first quarter of 2023, reaching 71.84 days.

The upward trend from the first quarter of 2022 to the third quarter of 2022 could indicate potential issues in managing working capital efficiency. However, the slight reduction in the CCC in the most recent quarter may suggest a positive development in the company's cash conversion management.

Overall, a detailed analysis of the components of the cash conversion cycle, including the days inventory outstanding, days sales outstanding, and days payable outstanding, would provide a more comprehensive understanding of the company's efficiency in managing its working capital.