Helmerich and Payne Inc (HP)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,771,940 | 2,765,470 | 2,912,620 | 3,318,510 | 4,012,220 |
| Debt-to-capital ratio | 0.16 | 0.16 | 0.16 | 0.13 | 0.11 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $545,144K ÷ ($545,144K + $2,771,940K)
= 0.16
The debt-to-capital ratio measures the proportion of a company's capital that is financed by debt. Helmerich & Payne, Inc.'s debt-to-capital ratio has fluctuated over the past five years, indicating changes in its capital structure.
In 2023, the company's debt-to-capital ratio remained consistent at 0.16, suggesting a stable balance between debt and equity financing. This indicates that 16% of the company's capital was funded by debt.
The ratio was also at 0.16 in 2022, suggesting a similar capital structure to the previous year. However, there was a notable increase in the ratio in 2021, reaching 0.26, indicating a higher reliance on debt financing and a potential increase in financial risk.
In 2020, the debt-to-capital ratio decreased to 0.13, signaling a reduction in the relative proportion of debt in the company's capital structure. This could indicate a more conservative approach to financing.
The lowest ratio over the five-year period was recorded in 2019 at 0.11, indicating a smaller portion of the capital being funded by debt.
Overall, the fluctuation in Helmerich & Payne, Inc.'s debt-to-capital ratio suggests varying levels of reliance on debt financing, impacting the company's financial risk and stability. Further analysis of the company's debt and equity structure would be beneficial to fully evaluate its financial leverage and risk exposure.
Peer comparison
Sep 30, 2023