Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
HP Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-K (reporting date: 2018-10-31), 10-Q (reporting date: 2018-07-31), 10-Q (reporting date: 2018-04-30), 10-Q (reporting date: 2018-01-31), 10-K (reporting date: 2017-10-31), 10-Q (reporting date: 2017-07-31), 10-Q (reporting date: 2017-04-30), 10-Q (reporting date: 2017-01-31), 10-K (reporting date: 2016-10-31), 10-Q (reporting date: 2016-07-31), 10-Q (reporting date: 2016-04-30), 10-Q (reporting date: 2016-01-31), 10-K (reporting date: 2015-10-31), 10-Q (reporting date: 2015-07-31), 10-Q (reporting date: 2015-04-30), 10-Q (reporting date: 2015-01-31), 10-K (reporting date: 2014-10-31), 10-Q (reporting date: 2014-07-31), 10-Q (reporting date: 2014-04-30), 10-Q (reporting date: 2014-01-31).
- Debt to equity ratio
- The debt to equity ratio showed a declining trend from January 2014 (0.89) through July 2014 (0.7), indicating a reduction in reliance on debt relative to equity. After July 2014, the ratio fluctuated moderately, reaching 0.94 by July 2015. No data is available beyond that point, which limits further trend analysis for this metric.
- Debt to capital ratio
- This ratio initially trended downward from 0.47 in January 2014 to 0.41 in July 2014, implying a decrease in debt as a component of total capital. It then increased to a peak of 0.49 in July 2015. Afterward, a substantial increase is observed starting in January 2016, with values exceeding 1 and reaching as high as 3.69, 3.41, and 2.35 in early 2016 quarters. This spike indicates significant changes in the company’s capital structure, possibly reflecting a reclassification or occurrence of substantial debt or liabilities. From late 2016 onward, the ratio gradually declined but remained above 1, ending at 1.29 in July 2019, which suggests continued high leverage relative to capital in recent years.
- Debt to assets ratio
- This measure remained relatively stable between 0.23 and 0.19 during the 2014-2015 period, suggesting consistent management of debt relative to total assets. Starting in early 2016, a gradual decline is apparent, reaching as low as 0.15 by January 2019. The decrease indicates a reduced proportion of debt relative to the asset base over the longer term. Slight fluctuations occur toward mid-2019, but the ratio remains low relative to the earlier years, demonstrating improved asset coverage or debt reduction.
- Financial leverage ratio
- The financial leverage ratio showed a gradual decline from 3.78 in January 2014 to 3.62 in July 2014 followed by an increase to 3.96 in July 2015. This pattern suggests fluctuating use of debt to amplify equity returns, with a peak indicating heightened financial leverage mid-2015. Data is missing beyond October 2015, precluding extended analysis.
Debt Ratios
Debt to Equity
HP Inc., debt to equity calculation (quarterly data)
| Jul 31, 2019 | Apr 30, 2019 | Jan 31, 2019 | Oct 31, 2018 | Jul 31, 2018 | Apr 30, 2018 | Jan 31, 2018 | Oct 31, 2017 | Jul 31, 2017 | Apr 30, 2017 | Jan 31, 2017 | Oct 31, 2016 | Jul 31, 2016 | Apr 30, 2016 | Jan 31, 2016 | Oct 31, 2015 | Jul 31, 2015 | Apr 30, 2015 | Jan 31, 2015 | Oct 31, 2014 | Jul 31, 2014 | Apr 30, 2014 | Jan 31, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Notes payable and short-term borrowings | 328) | 290) | 297) | 1,463) | 2,681) | 1,617) | 1,529) | 1,072) | 1,062) | 110) | 100) | 78) | 75) | 64) | 49) | 2,885) | 11,034) | 5,594) | 3,509) | 3,486) | 2,705) | 5,396) | 6,621) | |||||||
| Long-term debt, excluding current portion | 4,730) | 4,749) | 4,706) | 4,524) | 4,503) | 4,494) | 6,340) | 6,747) | 6,744) | 6,710) | 6,688) | 6,758) | 6,760) | 6,708) | 6,683) | 21,780) | 14,468) | 15,464) | 15,552) | 16,039) | 17,128) | 17,190) | 17,971) | |||||||
| Total debt | 5,058) | 5,039) | 5,003) | 5,987) | 7,184) | 6,111) | 7,869) | 7,819) | 7,806) | 6,820) | 6,788) | 6,836) | 6,835) | 6,772) | 6,732) | 24,665) | 25,502) | 21,058) | 19,061) | 19,525) | 19,833) | 22,586) | 24,592) | |||||||
| Total HP stockholders’ equity (deficit) | (1,131) | (1,487) | (1,837) | (639) | (1,767) | (1,863) | (2,742) | (3,408) | (4,339) | (3,955) | (4,327) | (3,889) | (3,926) | (4,786) | (4,909) | 27,768) | 27,035) | 26,768) | 26,507) | 26,731) | 28,509) | 28,185) | 27,754) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to equity1 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.89 | 0.94 | 0.79 | 0.72 | 0.73 | 0.70 | 0.80 | 0.89 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||||
| Apple Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Arista Networks Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Cisco Systems Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Dell Technologies Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Super Micro Computer Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-K (reporting date: 2018-10-31), 10-Q (reporting date: 2018-07-31), 10-Q (reporting date: 2018-04-30), 10-Q (reporting date: 2018-01-31), 10-K (reporting date: 2017-10-31), 10-Q (reporting date: 2017-07-31), 10-Q (reporting date: 2017-04-30), 10-Q (reporting date: 2017-01-31), 10-K (reporting date: 2016-10-31), 10-Q (reporting date: 2016-07-31), 10-Q (reporting date: 2016-04-30), 10-Q (reporting date: 2016-01-31), 10-K (reporting date: 2015-10-31), 10-Q (reporting date: 2015-07-31), 10-Q (reporting date: 2015-04-30), 10-Q (reporting date: 2015-01-31), 10-K (reporting date: 2014-10-31), 10-Q (reporting date: 2014-07-31), 10-Q (reporting date: 2014-04-30), 10-Q (reporting date: 2014-01-31).
1 Q3 2019 Calculation
Debt to equity = Total debt ÷ Total HP stockholders’ equity (deficit)
= 5,058 ÷ -1,131 = —
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibits a fluctuating trend over the analyzed periods. From early 2014 to late 2015, debt initially decreased from approximately $24.6 billion to about $19.5 billion, then sharply increased to a peak of around $25.5 billion in mid-2015 before settling back near $24.7 billion by the end of 2015. Subsequently, a significant decline occurred starting in early 2016, with debt levels dropping below $7 billion and maintaining stability around $6.8 billion through late 2016. From 2017 onwards, total debt showed moderate fluctuations, ranging mainly between $5 billion and $7.9 billion, with a generally decreasing pattern observed toward mid-2019.
- Total HP Stockholders’ Equity (Deficit)
- Total stockholders' equity displayed positive values during the periods of 2014 and 2015, generally hovering around $26.5 billion to $28.7 billion, with minor fluctuations. However, starting in early 2016, the equity shifted into negative territory, indicating a deficit. This deficit deepened slightly throughout 2016 and fluctuated during 2017, moving between roughly -$4.3 billion and -$3.4 billion. In 2018 and 2019, the deficit narrowed progressively, improving from near -$2.7 billion to around -$1.1 billion by mid-2019, suggesting an overall recovery trend in equity value.
- Debt to Equity Ratio
- The debt to equity ratio data is only available through late 2015. The ratio declined from 0.89 in early 2014 to 0.7 mid-2014, indicating a strengthening equity base or a reduction in debt relative to equity. It then increased to a peak of 0.94 by mid-2015, reflecting higher leverage, before declining slightly to 0.89 at the end of 2015. The absence of data beyond 2015 limits further analysis, but the pattern suggests periods of varying financial leverage during this timeframe.
Overall, the financial data reveals a period of deleveraging beginning in 2016, as evidenced by the sharp reduction in total debt. This reduction coincides with the shift to a stockholders’ equity deficit, indicating challenges in maintaining positive equity levels. However, the subsequent partial recovery in equity deficit suggests some improvement in financial stability. The debt to equity ratio trends up to 2015 show an initial reduction in leverage, followed by an increase, reflecting dynamic changes in capital structure before the notable shift occurring in 2016.
Debt to Capital
HP Inc., debt to capital calculation (quarterly data)
| Jul 31, 2019 | Apr 30, 2019 | Jan 31, 2019 | Oct 31, 2018 | Jul 31, 2018 | Apr 30, 2018 | Jan 31, 2018 | Oct 31, 2017 | Jul 31, 2017 | Apr 30, 2017 | Jan 31, 2017 | Oct 31, 2016 | Jul 31, 2016 | Apr 30, 2016 | Jan 31, 2016 | Oct 31, 2015 | Jul 31, 2015 | Apr 30, 2015 | Jan 31, 2015 | Oct 31, 2014 | Jul 31, 2014 | Apr 30, 2014 | Jan 31, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Notes payable and short-term borrowings | 328) | 290) | 297) | 1,463) | 2,681) | 1,617) | 1,529) | 1,072) | 1,062) | 110) | 100) | 78) | 75) | 64) | 49) | 2,885) | 11,034) | 5,594) | 3,509) | 3,486) | 2,705) | 5,396) | 6,621) | |||||||
| Long-term debt, excluding current portion | 4,730) | 4,749) | 4,706) | 4,524) | 4,503) | 4,494) | 6,340) | 6,747) | 6,744) | 6,710) | 6,688) | 6,758) | 6,760) | 6,708) | 6,683) | 21,780) | 14,468) | 15,464) | 15,552) | 16,039) | 17,128) | 17,190) | 17,971) | |||||||
| Total debt | 5,058) | 5,039) | 5,003) | 5,987) | 7,184) | 6,111) | 7,869) | 7,819) | 7,806) | 6,820) | 6,788) | 6,836) | 6,835) | 6,772) | 6,732) | 24,665) | 25,502) | 21,058) | 19,061) | 19,525) | 19,833) | 22,586) | 24,592) | |||||||
| Total HP stockholders’ equity (deficit) | (1,131) | (1,487) | (1,837) | (639) | (1,767) | (1,863) | (2,742) | (3,408) | (4,339) | (3,955) | (4,327) | (3,889) | (3,926) | (4,786) | (4,909) | 27,768) | 27,035) | 26,768) | 26,507) | 26,731) | 28,509) | 28,185) | 27,754) | |||||||
| Total capital | 3,927) | 3,552) | 3,166) | 5,348) | 5,417) | 4,248) | 5,127) | 4,411) | 3,467) | 2,865) | 2,461) | 2,947) | 2,909) | 1,986) | 1,823) | 52,433) | 52,537) | 47,826) | 45,568) | 46,256) | 48,342) | 50,771) | 52,346) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to capital1 | 1.29 | 1.42 | 1.58 | 1.12 | 1.33 | 1.44 | 1.53 | 1.77 | 2.25 | 2.38 | 2.76 | 2.32 | 2.35 | 3.41 | 3.69 | 0.47 | 0.49 | 0.44 | 0.42 | 0.42 | 0.41 | 0.44 | 0.47 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||||
| Apple Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Arista Networks Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Cisco Systems Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Dell Technologies Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Super Micro Computer Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-K (reporting date: 2018-10-31), 10-Q (reporting date: 2018-07-31), 10-Q (reporting date: 2018-04-30), 10-Q (reporting date: 2018-01-31), 10-K (reporting date: 2017-10-31), 10-Q (reporting date: 2017-07-31), 10-Q (reporting date: 2017-04-30), 10-Q (reporting date: 2017-01-31), 10-K (reporting date: 2016-10-31), 10-Q (reporting date: 2016-07-31), 10-Q (reporting date: 2016-04-30), 10-Q (reporting date: 2016-01-31), 10-K (reporting date: 2015-10-31), 10-Q (reporting date: 2015-07-31), 10-Q (reporting date: 2015-04-30), 10-Q (reporting date: 2015-01-31), 10-K (reporting date: 2014-10-31), 10-Q (reporting date: 2014-07-31), 10-Q (reporting date: 2014-04-30), 10-Q (reporting date: 2014-01-31).
1 Q3 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 5,058 ÷ 3,927 = 1.29
2 Click competitor name to see calculations.
The financial data reveals notable trends in the company's debt structure and capital base over the analyzed quarterly periods.
- Total Debt
- Total debt initially shows a gradual decrease from approximately 24.6 billion US dollars in early 2014 to around 19.5 billion by the end of 2014, followed by an increase peaking in late 2015 at approximately 25.5 billion. From early 2016 onward, a significant reduction is evident, with debt levels declining sharply to about 5 billion by mid-2019. This pattern indicates a strategic reduction in leverage over the recent years after an initial period of volatility.
- Total Capital
- The total capital figures follow a somewhat parallel yet less volatile trajectory compared to total debt. Starting at roughly 52.3 billion in early 2014, there is a decline through the end of 2014, followed by an increase peaking near 52.5 billion in late 2015. Post 2015, total capital experiences a steep drop to under 4 billion by mid-2019. The substantial decline in total capital throughout 2016 to 2019 suggests changes in the equity base or reclassification effects alongside debt repayment or restructuring.
- Debt to Capital Ratio
- The debt to capital ratio trends reveal significant fluctuations over the periods. Initially, the ratio declines gradually from 0.47 to about 0.41 by mid-2014, then rises to nearly 0.49 by late 2015, reflecting relative increases in debt compared to capital during that time. From early 2016, the ratio spikes sharply to as high as 3.69, indicating debt levels greatly exceeding capital. Subsequently, this ratio trends downward steadily to around 1.29 by mid-2019, showing improvement in the balance between debt and capital. Despite the high mid-period ratios, the downward trend suggests ongoing efforts to deleverage and strengthen the capital structure.
Overall, the data illustrates a period of elevated leverage and capital volatility up to late 2015, followed by a pronounced deleveraging phase characterized by sharp reductions in total debt and capital. The improvement in debt to capital ratio in recent years points to reinforced financial stability and potential prioritization of capital restructuring strategies.
Debt to Assets
HP Inc., debt to assets calculation (quarterly data)
| Jul 31, 2019 | Apr 30, 2019 | Jan 31, 2019 | Oct 31, 2018 | Jul 31, 2018 | Apr 30, 2018 | Jan 31, 2018 | Oct 31, 2017 | Jul 31, 2017 | Apr 30, 2017 | Jan 31, 2017 | Oct 31, 2016 | Jul 31, 2016 | Apr 30, 2016 | Jan 31, 2016 | Oct 31, 2015 | Jul 31, 2015 | Apr 30, 2015 | Jan 31, 2015 | Oct 31, 2014 | Jul 31, 2014 | Apr 30, 2014 | Jan 31, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Notes payable and short-term borrowings | 328) | 290) | 297) | 1,463) | 2,681) | 1,617) | 1,529) | 1,072) | 1,062) | 110) | 100) | 78) | 75) | 64) | 49) | 2,885) | 11,034) | 5,594) | 3,509) | 3,486) | 2,705) | 5,396) | 6,621) | |||||||
| Long-term debt, excluding current portion | 4,730) | 4,749) | 4,706) | 4,524) | 4,503) | 4,494) | 6,340) | 6,747) | 6,744) | 6,710) | 6,688) | 6,758) | 6,760) | 6,708) | 6,683) | 21,780) | 14,468) | 15,464) | 15,552) | 16,039) | 17,128) | 17,190) | 17,971) | |||||||
| Total debt | 5,058) | 5,039) | 5,003) | 5,987) | 7,184) | 6,111) | 7,869) | 7,819) | 7,806) | 6,820) | 6,788) | 6,836) | 6,835) | 6,772) | 6,732) | 24,665) | 25,502) | 21,058) | 19,061) | 19,525) | 19,833) | 22,586) | 24,592) | |||||||
| Total assets | 32,405) | 31,946) | 32,490) | 34,622) | 34,254) | 32,087) | 35,245) | 32,913) | 31,934) | 28,686) | 28,192) | 29,010) | 27,224) | 25,523) | 25,517) | 106,882) | 107,033) | 101,396) | 100,861) | 103,206) | 103,170) | 103,972) | 105,025) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to assets1 | 0.16 | 0.16 | 0.15 | 0.17 | 0.21 | 0.19 | 0.22 | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 | 0.25 | 0.27 | 0.26 | 0.23 | 0.24 | 0.21 | 0.19 | 0.19 | 0.19 | 0.22 | 0.23 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||||
| Apple Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Arista Networks Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Cisco Systems Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Dell Technologies Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Super Micro Computer Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-K (reporting date: 2018-10-31), 10-Q (reporting date: 2018-07-31), 10-Q (reporting date: 2018-04-30), 10-Q (reporting date: 2018-01-31), 10-K (reporting date: 2017-10-31), 10-Q (reporting date: 2017-07-31), 10-Q (reporting date: 2017-04-30), 10-Q (reporting date: 2017-01-31), 10-K (reporting date: 2016-10-31), 10-Q (reporting date: 2016-07-31), 10-Q (reporting date: 2016-04-30), 10-Q (reporting date: 2016-01-31), 10-K (reporting date: 2015-10-31), 10-Q (reporting date: 2015-07-31), 10-Q (reporting date: 2015-04-30), 10-Q (reporting date: 2015-01-31), 10-K (reporting date: 2014-10-31), 10-Q (reporting date: 2014-07-31), 10-Q (reporting date: 2014-04-30), 10-Q (reporting date: 2014-01-31).
1 Q3 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 5,058 ÷ 32,405 = 0.16
2 Click competitor name to see calculations.
- Total Debt
- The total debt showed a declining trend from early 2014 through early 2016, decreasing from 24,592 million US dollars in January 2014 to around 6,732 million US dollars in January 2016. Afterwards, it remained relatively stable with minor fluctuations, generally ranging between approximately 5,000 and 7,800 million US dollars through mid-2019. Notably, there was a significant reduction in debt from late 2015 onward, indicating a possible strategic effort to deleverage the balance sheet.
- Total Assets
- Total assets exhibited a substantial decrease from over 100,000 million US dollars in early 2014 to slightly above 25,000 million US dollars by early 2016. Following this period, assets steadily increased, reaching above 34,000 million US dollars in mid-2019. This progression suggests a period of asset divestiture or revaluation before a phase of asset accumulation or growth.
- Debt to Assets Ratio
- The debt to assets ratio began near 0.23 in early 2014, declining gradually to 0.19–0.21 during 2014 and 2015. From 2016 forward, the ratio stabilized mostly between 0.15 and 0.24, with a downward tendency toward the later periods, reaching approximately 0.16 by mid-2019. This trend reflects an improved leverage position over time, particularly from 2016 onward, aligning with the observed reductions in total debt and the recovery in total assets.
- Overall Analysis
- The data reveals a transformative period around 2015–2016 characterized by a significant drop in both total debt and total assets, likely linked to structural changes such as asset sales or debt repayment initiatives. Post-2016, the company's asset base showed consistent growth while total debt levels remained relatively low and stable, leading to an improved leverage ratio. This pattern points to enhanced financial stability and potentially a more cautious approach to debt management during the reviewed timeframe.
Financial Leverage
HP Inc., financial leverage calculation (quarterly data)
| Jul 31, 2019 | Apr 30, 2019 | Jan 31, 2019 | Oct 31, 2018 | Jul 31, 2018 | Apr 30, 2018 | Jan 31, 2018 | Oct 31, 2017 | Jul 31, 2017 | Apr 30, 2017 | Jan 31, 2017 | Oct 31, 2016 | Jul 31, 2016 | Apr 30, 2016 | Jan 31, 2016 | Oct 31, 2015 | Jul 31, 2015 | Apr 30, 2015 | Jan 31, 2015 | Oct 31, 2014 | Jul 31, 2014 | Apr 30, 2014 | Jan 31, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Total assets | 32,405) | 31,946) | 32,490) | 34,622) | 34,254) | 32,087) | 35,245) | 32,913) | 31,934) | 28,686) | 28,192) | 29,010) | 27,224) | 25,523) | 25,517) | 106,882) | 107,033) | 101,396) | 100,861) | 103,206) | 103,170) | 103,972) | 105,025) | |||||||
| Total HP stockholders’ equity (deficit) | (1,131) | (1,487) | (1,837) | (639) | (1,767) | (1,863) | (2,742) | (3,408) | (4,339) | (3,955) | (4,327) | (3,889) | (3,926) | (4,786) | (4,909) | 27,768) | 27,035) | 26,768) | 26,507) | 26,731) | 28,509) | 28,185) | 27,754) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Financial leverage1 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 3.85 | 3.96 | 3.79 | 3.81 | 3.86 | 3.62 | 3.69 | 3.78 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||||
| Apple Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Arista Networks Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Cisco Systems Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Dell Technologies Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Super Micro Computer Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-K (reporting date: 2018-10-31), 10-Q (reporting date: 2018-07-31), 10-Q (reporting date: 2018-04-30), 10-Q (reporting date: 2018-01-31), 10-K (reporting date: 2017-10-31), 10-Q (reporting date: 2017-07-31), 10-Q (reporting date: 2017-04-30), 10-Q (reporting date: 2017-01-31), 10-K (reporting date: 2016-10-31), 10-Q (reporting date: 2016-07-31), 10-Q (reporting date: 2016-04-30), 10-Q (reporting date: 2016-01-31), 10-K (reporting date: 2015-10-31), 10-Q (reporting date: 2015-07-31), 10-Q (reporting date: 2015-04-30), 10-Q (reporting date: 2015-01-31), 10-K (reporting date: 2014-10-31), 10-Q (reporting date: 2014-07-31), 10-Q (reporting date: 2014-04-30), 10-Q (reporting date: 2014-01-31).
1 Q3 2019 Calculation
Financial leverage = Total assets ÷ Total HP stockholders’ equity (deficit)
= 32,405 ÷ -1,131 = —
2 Click competitor name to see calculations.
- Total Assets
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Total assets initially show a gradual decline from approximately 105 billion US dollars in early 2014 to around 100 billion by early 2015. This downward trend is followed by a moderate recovery through late 2015, peaking above 107 billion US dollars. Beginning in 2016, a significant reduction occurs with total assets sharply decreasing to approximately 25 billion US dollars, after which a consistent upward trajectory is observed through 2017 and 2018. The asset base increases steadily during this period, reaching a range between 32 and 35 billion US dollars. However, in 2019, total assets display slight declines but remain stable around the low 32 billion US dollar mark. This overall pattern suggests a major structural change or asset reclassification around 2016, followed by a phase of asset rebuilding or consolidation.
- Total HP Stockholders’ Equity (Deficit)
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Stockholders' equity trends mirror a notable shift observed with total assets. Equity initially increases modestly from roughly 27.8 billion to 28.8 billion US dollars by mid-2014 before declining to about 26.5 billion by early 2015. Following this, equity appears stable with minor fluctuations until early 2016, where a transition to negative equity is evident. From this point, a series of negative equity balances continue, trending from around -4.9 billion to approximately -1.1 billion by mid-2019. The negative equity situation suggests accumulated losses or other comprehensive loss impacts during this timeframe. The gradual improvement in equity deficit from late 2017 to 2019 implies efforts toward financial restructuring and strengthening shareholder value.
- Financial Leverage Ratio
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The financial leverage ratio remains within a narrow range from 3.62 to 3.96 during the 2014 and 2015 quarters, indicating relatively stable debt to equity structure before 2016. Data for this ratio after early 2016 is not available, limiting insight into subsequent leverage trends. Nonetheless, the earlier measured ratios suggest a moderate to high reliance on debt relative to equity, consistent with the changes in equity values and total assets during that period.
- Overall Observations
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The presented financial metrics reveal a significant restructuring phase around 2016, reflected by a pronounced reduction in total assets and a shift to negative stockholders' equity. This structural change appears to be followed by a recovery phase marked by growth in total assets and reduction of negative equity deficits. The stability of financial leverage ratios prior to 2016 suggests consistent risk management, although missing data post-2016 restricts full assessment of financial risk in the later periods. The trends indicate concerted efforts to improve financial health following a critical transition period.