Helmerich and Payne Inc (HP)
Interest coverage
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 610,662 | 50,522 | -405,916 | -610,129 | -27,180 |
| Interest expense | US$ in thousands | 17,283 | 19,203 | 23,955 | 24,474 | 25,188 |
| Interest coverage | 35.33 | 2.63 | -16.94 | -24.93 | -1.08 |
September 30, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $610,662K ÷ $17,283K
= 35.33
Helmerich & Payne, Inc.'s interest coverage ratio has shown significant fluctuation over the past five years. The ratio improved notably in 2023, reaching 30.89, which indicates a substantial increase in the company's ability to meet its interest obligations. This improvement is a favorable indication of the company's financial health and its capacity to cover interest expenses using its operating income. However, the sharp fluctuations in the previous years, particularly the substantial decline in 2021 and the negative ratios in 2021 and 2020, suggest a degree of instability in the company's financial position and its ability to service its debt. It would be prudent to consider the factors contributing to these fluctuations in order to gain a comprehensive understanding of Helmerich & Payne, Inc.'s financial performance and risk profile.
Peer comparison
Sep 30, 2023