Helmerich and Payne Inc (HP)
Return on total capital
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 484,184 | 494,717 | 508,276 | 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 |
| Long-term debt | US$ in thousands | 1,782,180 | 545,589 | 545,441 | 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 |
| Total stockholders’ equity | US$ in thousands | 2,917,150 | 2,856,840 | 2,803,070 | 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 |
| Return on total capital | 10.30% | 14.54% | 15.18% | 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% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $484,184K ÷ ($1,782,180K + $2,917,150K)
= 10.30%
The return on total capital for Helmerich and Payne Inc has shown fluctuations over the past few quarters. It increased from 10.30% in September 2024 to 15.18% in March 2024, indicating improved efficiency in generating returns from both debt and equity capital.
However, it is noteworthy that the return on total capital was negative in several quarters, notably declining to -19.73% in December 2020. This could indicate challenges in utilizing capital effectively or generating sufficient returns to cover the cost of capital.
Overall, the return on total capital has displayed volatility, reflecting the company's performance in generating earnings in relation to the total capital employed. Further analysis of the factors impacting these returns, such as operational efficiency, profitability, and capital structure, would provide a more comprehensive understanding of Helmerich and Payne Inc's financial performance.
Peer comparison
Sep 30, 2024