Helmerich & Payne, Inc. — Earnings Quality Grade F
HP · Energy
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 18 days (55 → 73)
AR outpaced revenue for 2 consecutive years
Revenue grew 35.9% but CFFO declined -20.7%
Expense Quality
Inventory growth 175.1% exceeds COGS 55.1%
CapEx growth -13.9% vs revenue 35.9%. Normal
SG&A/Gross Profit = 47.1%. Normal
Gross margin swung -10.4pp (26.6% → 16.3%)
Cash Flow Quality
CFFO/NI = -3.32. Below 1.0
FCF $0.1B, FCF/NI = -0.71
Accruals ratio = -10.5%. Low accruals
Cash $0.2B covers only 10% of debt $2.2B
Balance Sheet Health
Goodwill+Intangibles $0.7B = 25% of equity. Manageable
Debt/EBITDA = 3.4x. Healthy
Other assets -94.9% vs revenue 35.9%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 570% YoY
Manipulation Score
M-Score = -2.26 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25