HP Inc. (NYSE:HPQ)

Debt to Equity Ratio

The ratio exhibited a declining trend from January 2013, starting at 1.23 and reducing steadily through October 2013 to 0.83. From early 2014 through July 2015, the ratio fluctuated moderately between 0.7 and 0.94, indicating relative stability in the company's capital structure with lower reliance on debt compared to equity during this period.

Debt to Capital Ratio

Initially, the debt to capital ratio decreased from 0.55 in January 2013 to around 0.41 by July 2014, suggesting a reduction in the proportion of debt within total capital. A slight increase occurred in late 2014 and early 2015, reaching 0.49 by July 2015. Post-2015, there was a marked and unusual surge in the ratio, peaking at 3.69 in January 2016 before gradually declining to 1.29 by July 2019. This abnormal rise above 1.0 may indicate data irregularities or changes in reporting definitions, but if accurate, it suggests a significant increase in debt relative to total capital in early 2016, followed by gradual deleveraging.

Debt to Assets Ratio

The debt to assets ratio gradually decreased from 0.26 in early 2013 to about 0.19 by mid-2014, indicating a lower proportion of assets financed through debt. There was a slight increase back to 0.26 in early 2016, followed by a generally stable trend around 0.24 through 2017 and 2018. In 2019, the ratio declined further to a low of 0.15 in January 2019 before stabilizing around 0.16 by mid-2019. This overall suggests a cautious approach to asset financing using debt, maintaining a moderate level of asset-backed leverage.

Financial Leverage Ratio

Financial leverage decreased from 4.66 in January 2013 to a low of 3.62 by July 2014, reflecting a reduction in the use of debt relative to equity to finance assets. There was a minor increase and some fluctuation through early 2015, reaching 3.96 in July 2015. Following that, the data is unavailable, preventing further analysis beyond mid-2015. The available figures imply a moderate leverage position with some efforts to reduce financial leverage over the observed period.

Overall Analysis

The data indicates a general trend of deleveraging through 2013 and 2014, with decreasing debt ratios relative to equity, capital, and assets, consistent with conservative financial management. However, anomalies are evident in the debt to capital ratio starting in 2016, where values exceed typical bounds for this type of ratio, suggesting potential data issues or a significant structural change. Meanwhile, debt to assets and financial leverage ratios exhibit relative stability after initial declines. The trends reflect prudent management of indebtedness until mid-2015, but later data requires careful validation before definitive conclusions.

The analysis of the quarterly financial data reveals several notable trends in the company's debt and equity positions over the reported periods.

Total Debt

The total debt exhibited a downward trend initially, decreasing consistently from 28,227 million USD in January 2013 to 19,061 million USD by January 2015. This reduction suggests active debt management or repayment during this period. Following January 2015, the total debt fluctuated, rising again to 25,502 million USD in July 2015 before declining sharply in January 2016 to 6,732 million USD. From January 2016 onward, the total debt remained relatively stable within the range of approximately 5,000 to 7,800 million USD, indicating controlled debt levels in the later years.

Total HP Stockholders’ Equity (Deficit)

The stockholders’ equity was positive and progressively increased from 22,895 million USD in January 2013 to 27,768 million USD in October 2015, showing growth in the company's net worth over this period. However, starting January 2016, a significant shift occurred with equity turning negative, indicating a deficit. The deficit ranged from roughly -4,909 million USD to a lower deficit of about -639 million USD by January 2019. Though the equity remained negative throughout this period, the magnitude of the deficit showed some fluctuations, suggesting volatile net asset value or possible balance sheet restructuring.

Debt to Equity Ratio

Within the periods where data was available, the debt to equity ratio showed a general declining trend from 1.23 in January 2013 to 0.72 in January 2015, consistent with the reduction in debt and an increase in equity. This implies an improved balance between debt and shareholders' equity during that time. Data beyond October 2015 are missing for this ratio, preventing further ratio trend analysis. The available data implies improved financial leverage management up to early 2015 but does not capture subsequent changes as the equity position became negative.

Overall, the financial data indicate that the company significantly reduced its total debt between early 2013 and early 2015 while increasing equity, which improved its leverage position. However, starting from early 2016, the company entered a period of negative equity despite maintaining more stable and lower debt levels. This shift to a deficit equity position warrants attention as it may reflect restructuring, asset write-downs, or other significant financial events impacting net worth. The missing debt to equity ratio data for the later periods limits the ability to quantitatively analyze leverage beyond 2015, but the trends in absolute values suggest noteworthy changes in financial structure during these years.

Total debt trends

The total debt shows an initial decreasing trend from January 2013 through October 2014, dropping from $28,227 million to $19,525 million. After this period, the debt levels exhibit some volatility, increasing notably in mid-2015 to $25,502 million before sharply declining in early 2016 to approximately $6,732 million. From 2016 onward, the total debt remains relatively stable with minor fluctuations around the $5,000–8,000 million range, ending at $5,058 million by July 2019.

Total capital patterns

Total capital follows a somewhat similar trend to total debt from 2013 to 2015, decreasing from $51,122 million to $46,256 million by October 2014, then increasing to $52,537 million by July 2015. However, there is a pronounced drop starting in early 2016, where total capital falls dramatically to under $3,000 million, maintaining a low level with slight increments thereafter, reaching about $3,927 million by July 2019. This considerable reduction post-2015 contrasts with the earlier periods of relative stability and growth.

Debt to capital ratio analysis

The debt to capital ratio declines steadily from 0.55 in early 2013 to a low of approximately 0.41 in mid-2014, indicating a reduction in leverage or debt relative to capital. This downward trend reverses sharply post-2015, with the ratio spiking to values well above 1.0, peaking at 3.69 in January 2016, suggesting that debt levels have exceeded capital significantly during this period. After this peak, the ratio generally decreases but remains above 1.0 through to mid-2019, evidencing consistently high leverage compared to the initial period.

Overall observations

There is a clear breakpoint around 2015 to 2016 where both total debt and total capital experience significant shifts—most notably a dramatic decrease in total capital and an initial steep drop followed by stabilization at lower debt levels. The increase in debt to capital ratio during this period reflects a substantial change in the company’s financial structure, suggesting potential restructuring or reclassification of financial items. Post-2016, the company operates with comparatively lower capital and moderate debt levels, resulting in elevated leverage ratios compared to the earlier years.

Total Debt

The total debt shows an overall declining trend from January 2013 to July 2019, starting at approximately $28.2 billion and decreasing to around $5.1 billion by mid-2019. The reduction in total debt is notable during the periods around early 2016, where a significant drop from the prior years' levels is observed. After stabilizing at lower levels in 2016 through early 2017, a modest increase occurs in mid-2017, followed by a subsequent decline, reaching the lowest levels by the last recorded quarter in July 2019.

Total Assets

Total assets remain relatively stable between January 2013 and late 2015, fluctuating around the $100 billion mark. A sharp decrease is observed in early 2016, with assets dropping to the $25-29 billion range. Following this decline, assets show variability with a general rising trend through 2017 and 2018. Peaks occur around late 2017 and 2018, reaching above $34 billion. Toward mid-2019, assets decrease slightly but remain higher than the post-2016 levels, indicating some recovery and asset accumulation after the steep early 2016 decline.

Debt to Assets Ratio

The debt to assets ratio decreases gradually from 0.26 in early 2013 to a trough of around 0.17 by early 2019, reflecting the relative decline in total debt compared to assets over the period. There is an increase in the ratio during early 2016, corresponding with the sharp drop in total assets, which temporarily raised leverage ratios. After mid-2016, the ratio stabilizes and continues its downward trend, reaching its lowest levels by 2019. This suggests improved financial leverage and a stronger balance sheet position in the later years.

The analysis of the financial data over the multiple quarterly periods reveals several notable trends and movements in key financial metrics.

Total Assets

Total assets showed a generally stable pattern, remaining fairly consistent around the 106,000 million US dollars mark through the 2013 to 2015 period. A significant change is observed beginning in 2016, where the assets reported drop substantially to a range near 25,000 to 35,000 million US dollars. This reduction indicates a possible restructuring, divestiture, or change in reporting scope. Despite the initial decline, there is a tendency for gradual growth in total assets from early 2016 to mid-2019, with assets increasing from approximately 25,000 million US dollars to over 32,000 million US dollars.

Total HP Stockholders’ Equity (Deficit)

The stockholders’ equity displayed an upward trend from 2013 through late 2015, where equity grew steadily from about 22,895 million US dollars to near 27,768 million US dollars. Following the return to equity reporting in 2016, the figures reflect a negative equity position, indicating a deficit. This deficit fluctuates but generally improves modestly from a low of around -4,909 million US dollars to a smaller deficit near -1,131 million US dollars by mid-2019. The negative stockholders’ equity suggests financial challenges or significant liabilities surpassing assets during this period.

Financial Leverage Ratio

The financial leverage ratio decreased gradually from 4.66 in early 2013 to 3.85 by the end of 2015, indicating a reduction in reliance on debt relative to equity. However, financial leverage data is not available following 2015. The initial decline in leverage suggests an improvement in the company’s capital structure and reduced financial risk during these years.

Overall, the data indicates a stable asset base followed by a considerable restructuring event around 2016, leading to lower total assets and the switch into stockholders’ equity deficit territory. This deficit improves gradually but remains negative, underpinning ongoing financial challenges. The leverage ratio's decline up to 2015 implies stronger capital management before the data discontinuation for this metric. Continuous monitoring of equity recovery and asset growth post-2016 appears critical for assessing financial health progressing forward.