Helmerich and Payne Inc (HP)
Solvency ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.31 | 0.12 | 0.12 | 0.12 | 0.12 | 0.13 | 0.12 | 0.12 | 0.12 | 0.13 | 0.13 | 0.12 | 0.11 | 0.12 | 0.12 | 0.11 | 0.10 | 0.10 | 0.09 | 0.08 |
| Debt-to-capital ratio | 0.38 | 0.16 | 0.16 | 0.16 | 0.16 | 0.17 | 0.16 | 0.17 | 0.16 | 0.17 | 0.17 | 0.16 | 0.16 | 0.15 | 0.15 | 0.14 | 0.13 | 0.12 | 0.12 | 0.11 |
| Debt-to-equity ratio | 0.61 | 0.19 | 0.19 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.19 | 0.18 | 0.18 | 0.17 | 0.14 | 0.14 | 0.14 | 0.12 |
| Financial leverage ratio | 1.98 | 1.57 | 1.58 | 1.60 | 1.58 | 1.60 | 1.58 | 1.61 | 1.57 | 1.58 | 1.59 | 1.58 | 1.73 | 1.49 | 1.49 | 1.47 | 1.46 | 1.46 | 1.50 | 1.47 |
Helmerich and Payne Inc's solvency ratios depict the company's ability to meet its financial obligations over the long term. The debt-to-assets ratio has shown consistency around 0.10 to 0.13, indicating that the company has maintained a healthy balance between its debt and assets. The debt-to-capital ratio has also been relatively stable, hovering between 0.11 and 0.17, reflecting a moderate level of debt compared to the company's total capital.
The debt-to-equity ratio has displayed a similar trend, staying within the range of 0.12 to 0.20. This ratio signifies that Helmerich and Payne has been relying more on equity financing compared to debt financing. The financial leverage ratio, which indicates the company's level of financial risk, has fluctuated between 1.46 and 1.73. This suggests that the company has been using leverage to some extent to fund its operations and investments.
Overall, the solvency ratios of Helmerich and Payne Inc demonstrate a balanced approach to managing debt and equity, with a moderate level of financial leverage to support its business activities.
Coverage ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 37.33 | 28.54 | 29.34 | 35.05 | 35.33 | 33.11 | 26.29 | 13.60 | 2.63 | -5.97 | -9.86 | -15.73 | -16.94 | -15.97 | -15.19 | -30.32 | -24.93 | -18.89 | -23.45 | -0.05 |
The interest coverage ratio of Helmerich and Payne Inc has exhibited fluctuations over the past several quarters. The ratio measures the company's ability to cover its interest expenses with its operating income.
Looking at the trend, we observe that there was a notable decrease in interest coverage from the third quarter of 2022 to the second quarter of 2023, where the ratio declined from 35.33 to 26.29. This could signal a potential strain on the company's ability to cover its interest obligations during that period.
However, there was a significant improvement in interest coverage starting from the fourth quarter of 2023, where the ratio increased steadily and peaked at 37.33 in the first quarter of 2024. This suggests a stronger ability to meet interest payments from operating earnings, indicating a healthier financial position during this period.
It is important to note that there were periods of negative interest coverage, particularly in the second and third quarters of 2022 and first quarter of 2023. Negative interest coverage indicates that the company's operating income was insufficient to cover its interest expenses during those periods, potentially raising concerns about the firm's financial stability.
Overall, fluctuations in interest coverage indicate varying levels of financial risk and operational performance for Helmerich and Payne Inc. It is essential for investors and stakeholders to closely monitor these trends to assess the company's ability to meet its debt obligations in the long run.