Helmerich and Payne Inc (HP)
Return on assets (ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 344,165 | 434,100 | 6,953 | -326,150 | -494,497 |
| Total assets | US$ in thousands | 5,781,900 | 4,381,960 | 4,355,530 | 5,034,130 | 4,829,620 |
| ROA | 5.95% | 9.91% | 0.16% | -6.48% | -10.24% |
September 30, 2024 calculation
ROA = Net income ÷ Total assets
= $344,165K ÷ $5,781,900K
= 5.95%
Helmerich and Payne Inc's return on assets (ROA) has shown variability over the past five years. In 2024, the ROA stands at 5.95%, which reflects a decrease from the previous year's 9.91%. Despite this decline, the company's ROA in 2024 remains positive, indicating that it generated 5.95 cents of profit for every dollar of assets it owns.
Compared to the ROA of 2020 and 2021, which were negative at -10.24% and -6.48% respectively, the company has shown significant improvement in profitability efficiency. The ROA of 2022 was very low at 0.16%, suggesting poor asset utilization and profitability in that period.
Overall, the trend in ROA suggests that Helmerich and Payne Inc has been working towards better utilization of its assets to generate profits, with a significant improvement from negative ROA to positive figures in recent years. However, there is room for further enhancement in efficiency to increase returns for shareholders.
Peer comparison
Sep 30, 2024