Helmerich and Payne Inc (HP)
Quick ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 404,188 | 458,713 | 228,894 | 192,623 | 495,602 |
| Total current liabilities | US$ in thousands | 418,931 | 394,810 | 866,306 | 219,136 | 410,238 |
| Quick ratio | 1.80 | 2.05 | 1.55 | 3.51 | 2.19 |
September 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($257,174K
+ $93,600K
+ $404,188K)
÷ $418,931K
= 1.80
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities with its most liquid assets. Helmerich & Payne, Inc.'s quick ratio has fluctuated over the past five years, indicating varying levels of liquidity.
In 2023, the quick ratio stands at 2.04, showing a decrease from the previous year's 2.21. This decrease may suggest a slight decline in the company's ability to cover its current liabilities with its quick assets. However, the current ratio remains above 1, indicating that the company still has an ample amount of quick assets to cover its short-term obligations.
Comparing to 2021, the quick ratio was 1.63, signifying that the company's ability to cover its short-term obligations with quick assets was relatively weaker. However, in 2020, the quick ratio was significantly higher at 3.71, indicating a strong liquidity position, which may have been fueled by the macroeconomic conditions prevalent at the time. Additionally, 2019 saw a quick ratio of 2.28, suggesting a relatively healthier liquidity position compared to 2021.
Overall, while the downward trend in recent years may warrant attention, Helmerich & Payne, Inc. continues to maintain a healthy quick ratio, signaling a solid ability to meet short-term obligations with its quick assets. As always, further analysis considering other financial metrics and industry benchmarks would provide a more comprehensive evaluation of the company's liquidity position.
Peer comparison
Sep 30, 2023