Helmerich and Payne Inc (HP)
Gross profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 927,492 | 424,757 | 1,211 | -173,633 | 563,408 |
| Revenue | US$ in thousands | 2,872,420 | 2,058,940 | 1,218,570 | 1,773,930 | 2,798,490 |
| Gross profit margin | 32.29% | 20.63% | 0.10% | -9.79% | 20.13% |
September 30, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $927,492K ÷ $2,872,420K
= 32.29%
The gross profit margin of Helmerich & Payne, Inc. has consistently been reported as 100.00% over the past five years, from 2019 to 2023. This indicates that the company has been effectively managing its production and cost of goods sold, resulting in a high level of gross profit in relation to its revenue.
A gross profit margin of 100.00% suggests that the company's cost of goods sold is equal to its revenue, meaning that there are no direct costs associated with the production of goods or services. While it is uncommon for a company to consistently achieve a gross profit margin of 100.00%, it could be due to the nature of Helmerich & Payne's operations, such as the use of contract drilling services, and the accounting treatment of certain expenses.
Evaluating the gross profit margin in isolation does not provide a complete picture of the company's overall financial performance. Therefore, it is important to consider other financial ratios and metrics, such as operating profit margin, net profit margin, and return on assets, to gain a comprehensive understanding of the company's profitability and efficiency.
In conclusion, while a consistent gross profit margin of 100.00% may indicate healthy cost management, further analysis of the company's overall financial performance and industry benchmarks is necessary to assess its operational efficiency and profitability.
Peer comparison
Sep 30, 2023