Helmerich and Payne Inc (HP)
Operating return on assets (Operating ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 561,889 | 45,292 | -428,549 | -620,187 | 20,582 |
| Total assets | US$ in thousands | 4,381,960 | 4,355,530 | 5,034,130 | 4,829,620 | 5,839,520 |
| Operating ROA | 12.82% | 1.04% | -8.51% | -12.84% | 0.35% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $561,889K ÷ $4,381,960K
= 12.82%
The operating return on assets (operating ROA) for Helmerich & Payne, Inc. has exhibited notable fluctuations over the past five years. In September 2023, the operating ROA stood at 12.18%, representing a substantial improvement from the prior year's 0.36%. This suggests that the company's operating income generated from its assets has increased significantly. In contrast, the operating ROA was negative in the preceding two years (-7.01% in 2021 and -1.82% in 2020), indicating that the company's operating income was insufficient to cover its assets' carrying costs.
It is noteworthy that the operating ROA rebounded to a positive 3.51% in September 2019 after the negative performance in preceding years. These fluctuations indicate the company's varying ability to generate operating income relative to its asset base, which may be influenced by changes in the industry, operational efficiency, or strategic decisions.
Overall, the recent significant improvement in operating ROA reflects a positive trend, indicating that Helmerich & Payne, Inc. has been more effective in generating operating income from its assets. However, ongoing monitoring of the company's operational performance and asset utilization will be essential to assess the sustainability of this improvement.
Peer comparison
Sep 30, 2023