Helmerich and Payne Inc (HP)
Quick 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 | 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 |
| Receivables | US$ in thousands | 435,819 | 404,188 | 449,588 | 525,611 | 512,681 | 458,713 | 397,880 | 329,572 | 282,381 | 228,894 | 233,632 | 209,402 | 233,623 | 192,623 | 302,194 | 531,556 | 500,947 | 495,602 | 508,183 | 552,737 |
| 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 |
| 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 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($214,104K
+ $84,121K
+ $435,819K)
÷ $468,986K
= 1.57
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. It is calculated by dividing quick assets (such as cash, marketable securities, and accounts receivable) by current liabilities.
Looking at the quick ratio of Helmerich & Payne, Inc., we can see that it has been consistently above 1.5 over the last eight quarters. A quick ratio above 1 indicates that the company has more than enough quick assets to cover its current liabilities, which is a positive sign of liquidity and short-term financial strength.
The trend in the quick ratio fluctuates slightly over the quarters, ranging from 2.21 to 1.75. This variability may be due to changes in the levels of current assets and liabilities. Overall, the company's quick ratio indicates a strong ability to meet its short-term financial obligations using its liquid assets.
While the quick ratio provides valuable insight into a company's short-term liquidity, it is important to consider other financial metrics and industry benchmarks to gain a comprehensive understanding of Helmerich & Payne, Inc.'s financial health and performance.
Peer comparison
Dec 31, 2023