Helmerich and Payne Inc (HP)
Debt-to-assets ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,782,180 | 545,144 | 542,610 | 541,997 | 480,727 |
| Total assets | US$ in thousands | 5,781,900 | 4,381,960 | 4,355,530 | 5,034,130 | 4,829,620 |
| Debt-to-assets ratio | 0.31 | 0.12 | 0.12 | 0.11 | 0.10 |
September 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,782,180K ÷ $5,781,900K
= 0.31
The debt-to-assets ratio for Helmerich and Payne Inc has shown a steady increase over the past five years, reaching 0.31 as of September 30, 2024. This indicates that the company's level of debt in relation to its total assets has been growing over this period.
The significant rise in the debt-to-assets ratio may suggest that Helmerich and Payne Inc has been relying more on debt financing to support its operations and growth initiatives. While taking on debt can provide companies with financial flexibility and leverage, a higher debt-to-assets ratio also implies increased financial risk and potential constraints on future borrowing capacity.
It is important for investors and stakeholders to closely monitor Helmerich and Payne Inc's debt levels and overall financial health, as a high debt-to-assets ratio can impact the company's ability to weather economic downturns, manage interest expenses, and invest in future growth opportunities. Conducting a thorough analysis of the company's financing strategies and debt management practices would be crucial in evaluating its long-term sustainability and resilience.
Peer comparison
Sep 30, 2024