Helmerich and Payne Inc (HP)
Return on assets (ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 434,100 | 6,953 | -326,150 | -494,497 | -33,656 |
| Total assets | US$ in thousands | 4,381,960 | 4,355,530 | 5,034,130 | 4,829,620 | 5,839,520 |
| ROA | 9.91% | 0.16% | -6.48% | -10.24% | -0.58% |
September 30, 2023 calculation
ROA = Net income ÷ Total assets
= $434,100K ÷ $4,381,960K
= 9.91%
The return on assets (ROA) for Helmerich & Payne, Inc. has exhibited significant fluctuations over the past five years, as indicated by the data provided.
In 2023, the ROA stands at a robust 9.77%, marking a substantial improvement compared to the previous year. This indicates that the company generated approximately 9.77 cents of profit for every dollar of assets it holds. This can be seen as a positive sign of improved operational efficiency and profitability relative to the assets employed.
The ROA for 2022 was a mere 0.13%, which is significantly lower than the latest figure. This indicates a considerable improvement in the utilization of assets to generate profits and reflects positively on the company's management and operational performance.
In 2021, the ROA was -6.51%, signifying a negative return on assets for that period. This suggests that the company's assets were not effectively employed to generate profits, resulting in a loss based on the assets utilized during the year.
In 2020, the ROA further deteriorated to -10.29%, indicating a continuation of the negative trend in asset utilization and profitability.
Lastly, in 2019, the ROA was -0.63%, also reflecting a negative return on assets, although to a lesser extent than in the subsequent years.
Overall, the analysis of Helmerich & Payne's ROA reveals a positive trend in asset utilization and profitability in the most recent year compared to previous years. The remarkable improvement in 2023 indicates that the company has been able to more effectively generate profits from its assets, which may be indicative of enhanced management, operational efficiency, or other strategic changes.
However, the company faced challenges in effectively utilizing its assets in the preceding years, as evidenced by the negative ROA figures. This signals a need for improvement in asset management and operational performance to ensure sustained profitability and value creation for its stakeholders.
Peer comparison
Sep 30, 2023