Helmerich and Payne Inc (HP)
Solvency ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.08 | 0.08 | 0.08 |
| Debt-to-capital ratio | 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 | 0.11 | 0.11 | 0.10 |
| Debt-to-equity ratio | 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 | 0.12 | 0.12 | 0.11 |
| Financial leverage ratio | 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 | 1.46 | 1.44 | 1.42 |
The solvency ratios of Helmerich & Payne, Inc. provide insight into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio remained relatively stable at around 0.12 to 0.13 throughout the four quarters of 2023, indicating that the company's total debt is well-managed in relation to its total assets.
Similarly, the debt-to-capital and debt-to-equity ratios also remained consistent at 0.16 to 0.17 and 0.20 respectively, suggesting that the company has maintained a healthy balance between debt and both total capital and equity. These ratios indicate that the company relies moderately on debt to finance its operations and investments.
The financial leverage ratio fluctuated slightly between 1.57 and 1.61 throughout the same period, but overall, it indicates that the company's assets are leveraged to support its operations. However, the variation in this ratio suggests potential changes in the company's capital structure and financial risk.
Overall, Helmerich & Payne, Inc. has exhibited a consistent and prudent approach to managing its debt and financial leverage over the quarters, maintaining a strong solvency position.
Coverage ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | -1.08 | -1.59 | 6.48 |
To analyze Helmerich & Payne, Inc.'s interest coverage, we can observe a significant improvement in the company's ability to cover its interest expenses from Dec 31, 2022, to Dec 31, 2023. The interest coverage ratio has increased steadily from 11.21 in Dec 31, 2022, to 29.43 in Dec 31, 2023. This indicates that the company's operating income is sufficient to cover its interest expenses by almost 30 times at the end of 2023.
This improvement suggests that the company's profitability and operational performance have strengthened, enabling it to comfortably meet its interest obligations. It is worth noting that the interest coverage ratio was negative in the second and third quarters of 2022, indicating that the company's operating income was insufficient to cover its interest expenses during that period. However, the subsequent recovery and sustained improvement in the interest coverage ratio demonstrate the company's ability to effectively manage its interest obligations and generate healthy levels of operating income.
Overall, the upward trend in Helmerich & Payne, Inc.'s interest coverage ratio reflects positive financial performance and indicates the company's ability to manage its debt and interest payments effectively.