Helmerich and Payne Inc (HP)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 31.04% | 32.29% | 20.63% | 0.10% | -9.79% |
| Operating profit margin | 16.39% | 19.56% | 2.20% | -35.17% | -34.96% |
| Pretax margin | 17.45% | 20.66% | 1.52% | -35.28% | -35.77% |
| Net profit margin | 12.49% | 15.11% | 0.34% | -26.76% | -27.88% |
Helmerich and Payne Inc's profitability ratios have exhibited fluctuations over the past five years. The gross profit margin, reflecting the company's ability to generate revenue after accounting for the cost of goods sold, has shown a declining trend from 2020 to 2022 before rebounding in 2023 and 2024.
The operating profit margin, which indicates the company's efficiency in managing its operating expenses, has also fluctuated over the years. The margin increased significantly from 2020 to 2023 but decreased in 2024 compared to the previous year.
Similarly, the pretax margin, which measures the company's profitability before accounting for taxes, has shown variability over the period. It improved from 2020 to 2023 but decreased slightly in 2024.
The net profit margin, representing the company's bottom-line profitability, has followed a similar pattern of fluctuation. It saw improvements from 2020 to 2023 but declined in 2024 compared to the prior year.
Overall, Helmerich and Payne Inc's profitability ratios demonstrate a mix of positive and negative trends over the past five years, indicating varying levels of operational efficiency and profitability during this period. It is important for the company to continue monitoring and managing its profitability margins to ensure sustainable financial performance and growth.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.82% | 12.82% | 1.04% | -8.51% | -12.84% |
| Return on assets (ROA) | 5.95% | 9.91% | 0.16% | -6.48% | -10.24% |
| Return on total capital | 9.62% | 18.41% | 1.53% | -11.75% | -16.06% |
| Return on equity (ROE) | 11.80% | 15.66% | 0.25% | -11.20% | -14.90% |
The profitability ratios of Helmerich and Payne Inc show a mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has been volatile, ranging from negative figures in 2021 and 2020 to positive levels in 2023 and 2024. The significant improvement in 2024 suggests better operational efficiency.
2. Return on assets (ROA) has also shown fluctuations, with positive but relatively lower levels compared to Operating ROA. The positive trend from 2020 to 2024 indicates a gradual enhancement in asset utilization and profitability.
3. Return on total capital has demonstrated a similar pattern, with a notable improvement in 2024 compared to the negative values in 2021 and 2020. This ratio reflects the efficiency in generating returns from both debt and equity capital.
4. Return on equity (ROE) has been positive throughout the period, although varying widely year by year. The substantial increase in 2024 highlights a potential enhancement in shareholder value and profitability.
In conclusion, Helmerich and Payne Inc's profitability ratios have shown improvements in recent years, indicating better utilization of assets, capital, and equity to generate returns. However, the company still faces volatility in its profitability performance, which may require continued monitoring and strategic adjustments.