Helmerich and Payne Inc (HP)
Quick ratio
| 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 | US$ in thousands | 217,341 | 203,633 | 193,636 | 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 |
| Short-term investments | US$ in thousands | 292,919 | 86,088 | 83,390 | 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 |
| Receivables | US$ in thousands | 418,604 | 415,395 | 431,681 | 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 |
| Total current liabilities | US$ in thousands | 446,949 | 456,792 | 438,837 | 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 |
| 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 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($217,341K
+ $292,919K
+ $418,604K)
÷ $446,949K
= 2.08
The quick ratio, also known as the acid-test ratio, measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered satisfactory, as it indicates that the company has enough liquid assets to cover its current liabilities.
Looking at the historical trend of Helmerich and Payne Inc's quick ratio, we observe some fluctuations over the past few quarters. The quick ratio has ranged between 1.54 to 3.51 over the period under consideration.
In recent quarters, the quick ratio has generally been above 1, indicating that the company has been able to meet its short-term obligations using its quick assets. The ratios have been above 2 in several periods, indicating a stronger ability to cover short-term liabilities.
The notable increase in the quick ratio in the first half of 2021, with values exceeding 2.00, suggests a significant improvement in the company's liquidity position during that period. Subsequently, there was a slight decline in the quick ratio in the later part of 2021 and into 2022, but it remained above 1.50.
Overall, Helmerich and Payne Inc's quick ratio trend indicates a relatively stable liquidity position, with the company generally maintaining a strong ability to cover its short-term liabilities using its quick assets. It would be important to continue monitoring this ratio to ensure that the company maintains a healthy liquidity position in the future.
Peer comparison
Sep 30, 2024