Helmerich and Payne Inc (HP)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,917,150 | 2,771,940 | 2,765,470 | 2,912,620 | 3,318,510 |
| ROE | 11.80% | 15.66% | 0.25% | -11.20% | -14.90% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $344,165K ÷ $2,917,150K
= 11.80%
The Return on Equity (ROE) for Helmerich and Payne Inc has fluctuated over the past five years. In 2024, the ROE stands at 11.80%, down from 15.66% in 2023, indicating a decrease in profitability relative to shareholders' equity. The company experienced a significant improvement in ROE from 2022, where it was only 0.25%, a positive sign for investors. However, in 2021 and 2020, the ROE was negative at -11.20% and -14.90% respectively, reflecting a period of financial distress and inefficiency in generating profits relative to shareholders' investment.
Overall, the recent positive trend in ROE is an encouraging sign, but the company needs to sustain and potentially improve its profitability to enhance shareholder value and confidence in the long term. Additionally, further analysis of the company's financial performance and efficiency ratios could provide more insights into the factors driving the changes in ROE over the years.
Peer comparison
Sep 30, 2024