Stock Analysis on Net

HP Inc. (NYSE:HPQ)

This company has been moved to the archive! The financial data has not been updated since August 29, 2019.

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

HP Inc., solvency ratios

Microsoft Excel
Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Debt Ratios
Debt to equity 0.89 0.73 0.83
Debt to capital 1.12 1.77 2.32 0.47 0.42 0.45
Debt to assets 0.17 0.24 0.24 0.23 0.19 0.21
Financial leverage 3.85 3.86 3.88
Coverage Ratios
Interest coverage 10.66 11.60 14.78 15.47 20.06 16.28
Fixed charge coverage 6.88 7.44 8.95 4.57 5.88 5.57

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. HP Inc. debt to capital ratio improved from 2016 to 2017 and from 2017 to 2018.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. HP Inc. debt to assets ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. HP Inc. interest coverage ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. HP Inc. fixed charge coverage ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

Debt to Equity

HP Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Selected Financial Data (US$ in millions)
Notes payable and short-term borrowings 1,463 1,072 78 2,885 3,486 5,979
Long-term debt, excluding current portion 4,524 6,747 6,758 21,780 16,039 16,608
Total debt 5,987 7,819 6,836 24,665 19,525 22,587
 
Total HP stockholders’ equity (deficit) (639) (3,408) (3,889) 27,768 26,731 27,269
Solvency Ratio
Debt to equity1 0.89 0.73 0.83
Benchmarks
Debt to Equity, Competitors2
Apple Inc.
Arista Networks Inc.
Cisco Systems Inc.
Super Micro Computer Inc. 0.14

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

1 2018 Calculation
Debt to equity = Total debt ÷ Total HP stockholders’ equity (deficit)
= 5,987 ÷ -639 =

2 Click competitor name to see calculations.


Debt to Capital

HP Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Selected Financial Data (US$ in millions)
Notes payable and short-term borrowings 1,463 1,072 78 2,885 3,486 5,979
Long-term debt, excluding current portion 4,524 6,747 6,758 21,780 16,039 16,608
Total debt 5,987 7,819 6,836 24,665 19,525 22,587
Total HP stockholders’ equity (deficit) (639) (3,408) (3,889) 27,768 26,731 27,269
Total capital 5,348 4,411 2,947 52,433 46,256 49,856
Solvency Ratio
Debt to capital1 1.12 1.77 2.32 0.47 0.42 0.45
Benchmarks
Debt to Capital, Competitors2
Apple Inc.
Arista Networks Inc.
Cisco Systems Inc.
Super Micro Computer Inc. 0.12

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

1 2018 Calculation
Debt to capital = Total debt ÷ Total capital
= 5,987 ÷ 5,348 = 1.12

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. HP Inc. debt to capital ratio improved from 2016 to 2017 and from 2017 to 2018.

Debt to Assets

HP Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Selected Financial Data (US$ in millions)
Notes payable and short-term borrowings 1,463 1,072 78 2,885 3,486 5,979
Long-term debt, excluding current portion 4,524 6,747 6,758 21,780 16,039 16,608
Total debt 5,987 7,819 6,836 24,665 19,525 22,587
 
Total assets 34,622 32,913 29,010 106,882 103,206 105,676
Solvency Ratio
Debt to assets1 0.17 0.24 0.24 0.23 0.19 0.21
Benchmarks
Debt to Assets, Competitors2
Apple Inc.
Arista Networks Inc.
Cisco Systems Inc.
Super Micro Computer Inc. 0.07

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

1 2018 Calculation
Debt to assets = Total debt ÷ Total assets
= 5,987 ÷ 34,622 = 0.17

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. HP Inc. debt to assets ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Financial Leverage

HP Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Selected Financial Data (US$ in millions)
Total assets 34,622 32,913 29,010 106,882 103,206 105,676
Total HP stockholders’ equity (deficit) (639) (3,408) (3,889) 27,768 26,731 27,269
Solvency Ratio
Financial leverage1 3.85 3.86 3.88
Benchmarks
Financial Leverage, Competitors2
Apple Inc.
Arista Networks Inc.
Cisco Systems Inc.
Super Micro Computer Inc. 2.10

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

1 2018 Calculation
Financial leverage = Total assets ÷ Total HP stockholders’ equity (deficit)
= 34,622 ÷ -639 =

2 Click competitor name to see calculations.


Interest Coverage

HP Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Selected Financial Data (US$ in millions)
Net earnings 5,327 2,526 2,496 4,554 5,013 5,113
Less: Net loss from discontinued operations (170)
Add: Income tax expense (2,314) 750 1,095 178 1,544 1,397
Add: Interest expense on borrowings 312 309 273 327 344 426
Earnings before interest and tax (EBIT) 3,325 3,585 4,034 5,059 6,901 6,936
Solvency Ratio
Interest coverage1 10.66 11.60 14.78 15.47 20.06 16.28
Benchmarks
Interest Coverage, Competitors2
Apple Inc.
Arista Networks Inc.
Cisco Systems Inc.
Super Micro Computer Inc. 15.78

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

1 2018 Calculation
Interest coverage = EBIT ÷ Interest expense
= 3,325 ÷ 312 = 10.66

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. HP Inc. interest coverage ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

Fixed Charge Coverage

HP Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Selected Financial Data (US$ in millions)
Net earnings 5,327 2,526 2,496 4,554 5,013 5,113
Less: Net loss from discontinued operations (170)
Add: Income tax expense (2,314) 750 1,095 178 1,544 1,397
Add: Interest expense on borrowings 312 309 273 327 344 426
Earnings before interest and tax (EBIT) 3,325 3,585 4,034 5,059 6,901 6,936
Add: Rent expense 200 200 200 1,000 1,000 1,000
Earnings before fixed charges and tax 3,525 3,785 4,234 6,059 7,901 7,936
 
Interest expense on borrowings 312 309 273 327 344 426
Rent expense 200 200 200 1,000 1,000 1,000
Fixed charges 512 509 473 1,327 1,344 1,426
Solvency Ratio
Fixed charge coverage1 6.88 7.44 8.95 4.57 5.88 5.57
Benchmarks
Fixed Charge Coverage, Competitors2
Apple Inc.
Arista Networks Inc.
Cisco Systems Inc.
Super Micro Computer Inc. 8.28

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

1 2018 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,525 ÷ 512 = 6.88

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. HP Inc. fixed charge coverage ratio deteriorated from 2016 to 2017 and from 2017 to 2018.