Helmerich and Payne Inc (HP)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 606,392 | 610,662 | 570,981 | 454,555 | 237,233 | 50,522 | -125,266 | -222,371 | -376,325 | -405,916 | -383,541 | -367,342 | -743,332 | -610,120 | -497,995 | -621,369 | -1,353 | -27,127 | -37,482 | 151,429 |
| Long-term debt | US$ in thousands | 545,292 | 545,144 | 544,996 | 542,734 | 542,932 | 542,610 | 542,290 | 541,969 | 542,236 | 541,997 | 542,000 | 542,000 | 542,000 | 480,727 | 480,269 | 479,811 | 479,355 | 479,356 | 491,651 | 491,227 |
| Total stockholders’ equity | US$ in thousands | 2,759,650 | 2,771,940 | 2,708,080 | 2,755,810 | 2,745,140 | 2,765,470 | 2,732,670 | 2,734,410 | 2,776,590 | 2,912,620 | 3,007,910 | 3,083,700 | 3,224,920 | 3,318,510 | 3,396,060 | 3,461,010 | 3,975,540 | 4,012,220 | 4,095,050 | 4,318,620 |
| Return on total capital | 18.35% | 18.41% | 17.55% | 13.78% | 7.21% | 1.53% | -3.82% | -6.79% | -11.34% | -11.75% | -10.80% | -10.13% | -19.73% | -16.06% | -12.85% | -15.77% | -0.03% | -0.60% | -0.82% | 3.15% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $606,392K ÷ ($545,292K + $2,759,650K)
= 18.35%
To analyze the return on total capital for Helmerich & Payne, Inc., we can observe the trend over the past eight quarters.
The return on total capital for the company has shown an improving trend, rising from 5.95% in December 2022 to 15.41% in December 2023. This indicates that the company's ability to generate returns from its total capital has strengthened over this period.
The consistent improvement in return on total capital suggests that the company is effectively utilizing its capital to generate profits, which can be a positive sign for investors and stakeholders.
It is also important to note that the return on total capital can be influenced by operational efficiency, capital structure, and overall profitability. Therefore, the increasing trend in this ratio reflects favorably on the company's financial performance.
Peer comparison
Dec 31, 2023