Helmerich and Payne Inc (HP)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 2,917,150 | 2,771,940 | 2,765,470 | 2,912,620 | 3,318,510 |
| Debt-to-equity ratio | 0.61 | 0.20 | 0.20 | 0.19 | 0.14 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,782,180K ÷ $2,917,150K
= 0.61
The debt-to-equity ratio of Helmerich and Payne Inc has shown an increasing trend over the past five years, indicating a higher reliance on debt financing compared to equity. In 2024, the ratio stands at 0.61, suggesting that for every dollar of equity, the company has $0.61 in debt. This represents a significant increase from the ratio of 0.14 in 2020.
Although a higher debt-to-equity ratio can indicate potential financial risk due to increased leverage, it may also signal strategic decisions to fuel growth or take advantage of low-interest rates. Investors and creditors may view this upward trend with caution as higher debt levels could lead to heightened financial vulnerability during periods of economic downturns or rising interest rates.
Helmerich and Payne Inc should closely monitor their debt levels and consider a balanced approach to capital structure to ensure sustainable growth while mitigating financial risk. Additionally, the company should assess the efficiency of its debt utilization and consider the potential impact on its overall financial health and operational flexibility.
Peer comparison
Sep 30, 2024