Helmerich and Payne Inc (HP)
Debt-to-assets ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 545,144 | 542,610 | 541,997 | 480,727 | 479,356 |
| Total assets | US$ in thousands | 4,381,960 | 4,355,530 | 5,034,130 | 4,829,620 | 5,839,520 |
| Debt-to-assets ratio | 0.12 | 0.12 | 0.11 | 0.10 | 0.08 |
September 30, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $545,144K ÷ $4,381,960K
= 0.12
The debt-to-assets ratio of Helmerich & Payne, Inc. has remained relatively stable over the past five years. In 2023 and 2022, the ratio stood at 0.12, indicating that the company's total debt represented 12% of its total assets. This suggests a conservative approach to leverage, as a lower ratio implies lower financial risk. The stability of the ratio over these two years might indicate a consistent management strategy regarding the company's capital structure and debt management.
Comparing to the previous years, there was a significant decrease in the debt-to-assets ratio from 2021 to 2020, dropping from 0.20 to 0.10. This substantial reduction could indicate a deliberate effort to reduce debt levels or a significant increase in asset values during 2020. The low ratio in 2019 at 0.08 suggests that the company had relatively low debt compared to its asset base, reflecting a financially conservative stance at that time.
Overall, the consistent and relatively low debt-to-assets ratio for Helmerich & Payne, Inc. in the recent years indicates a prudent approach to managing its capital structure and financial risk, which could be viewed positively by creditors and investors.
Peer comparison
Sep 30, 2023