Helmerich and Payne Inc (HP)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 32.29% | 20.63% | 0.10% | -9.79% | 20.13% |
| Operating profit margin | 19.56% | 2.20% | -35.17% | -34.96% | 0.74% |
| Pretax margin | 20.66% | 1.52% | -35.28% | -35.77% | -1.87% |
| Net profit margin | 15.11% | 0.34% | -26.76% | -27.88% | -1.20% |
The profitability ratios of Helmerich & Payne, Inc. show a varying trend over the past five years. The gross profit margin has remained consistently strong at 100.00% during this period, indicating the company's ability to effectively control production costs and generate profit from its operations.
However, the operating profit margin has fluctuated significantly, from a low of -28.95% in 2021 to a high of 18.58% in 2023. This volatile trend suggests potential challenges in managing operating expenses and maintaining profitability from core business activities.
Similarly, the pretax margin and net profit margin have also shown a fluctuating pattern, with negative margins in 2020 and 2021, followed by a significant improvement in 2023. These ratios reflect the company's ability to generate profits after accounting for all operating and non-operating expenses, as well as taxes.
Overall, the profitability ratios of Helmerich & Payne, Inc. demonstrate a mixed performance, with the company experiencing both periods of strong profitability and challenges in controlling expenses and generating net income. It is important for the company to focus on sustaining and improving its operating efficiency and profitability in the future.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.82% | 1.04% | -8.51% | -12.84% | 0.35% |
| Return on assets (ROA) | 9.91% | 0.16% | -6.48% | -10.24% | -0.58% |
| Return on total capital | 18.41% | 1.53% | -11.75% | -16.06% | -0.61% |
| Return on equity (ROE) | 15.66% | 0.25% | -11.20% | -14.90% | -0.84% |
Based on the profitability ratios of Helmerich & Payne, Inc., there has been a significant improvement in profitability over the past few years.
Firstly, the operating return on assets (Operating ROA) has shown a remarkable improvement, from a mere 0.36% in 2022 to 12.18% in 2023, indicating a substantial increase in the company's operating efficiency in generating profits from its assets.
Similarly, the return on assets (ROA) has also shown a positive trend, increasing from 0.13% in 2022 to 9.77% in 2023. This indicates a significant improvement in the company's ability to generate profits from its total assets.
The return on total capital has also shown a strong recovery, with a notable improvement from 0.47% in 2022 to 16.09% in 2023, suggesting an enhanced ability to generate profits from the total capital employed.
Lastly, the return on equity (ROE) has displayed a substantial improvement, increasing from 0.20% in 2022 to 15.45% in 2023, reflecting a significant increase in the company's ability to generate profits from the shareholders' equity.
Overall, the consistent improvement in these profitability ratios signifies that Helmerich & Payne, Inc. has been successful in enhancing its operational efficiency and profitability over the past few years.