Helmerich and Payne Inc (HP)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 451,899 | 610,662 | 50,522 | -405,916 | -610,129 |
| Long-term debt | US$ in thousands | 1,782,180 | 545,144 | 542,610 | 541,997 | 480,727 |
| Total stockholders’ equity | US$ in thousands | 2,917,150 | 2,771,940 | 2,765,470 | 2,912,620 | 3,318,510 |
| Return on total capital | 9.62% | 18.41% | 1.53% | -11.75% | -16.06% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $451,899K ÷ ($1,782,180K + $2,917,150K)
= 9.62%
The return on total capital for Helmerich and Payne Inc has fluctuated over the past five years, demonstrating varying levels of efficiency in utilizing its capital resources.
In 2024, the return on total capital stood at 9.62%, indicating the company generated a return of approximately 9.62% for every dollar of total capital employed during the year. This represented a decrease from the previous year's level of 18.41%, suggesting a decline in capital efficiency.
The performance in 2023 reflected a notable improvement over the prior year, with a return on total capital of 18.41%. This indicates a strong ability to generate returns relative to the total capital invested.
The return on total capital in 2022 was relatively low at 1.53%, signaling a minimal return on the overall capital employed during the period. The negative returns in 2021 (-11.75%) and 2020 (-16.06%) imply that the company experienced challenges generating profits relative to the capital invested in those years.
Overall, the fluctuating trend in return on total capital for Helmerich and Payne Inc suggests varying degrees of efficiency in deploying its capital resources effectively to generate returns for its stakeholders. Further analysis of the company's operations and financial performance may be necessary to understand the factors driving these fluctuations.
Peer comparison
Sep 30, 2024