HP Inc (HPQ)
Fixed asset turnover
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 53,105,000 | 53,718,000 | 54,675,000 | 56,127,000 | 59,695,000 | 62,910,000 | 64,784,000 | 65,425,000 | 64,827,000 | 63,460,000 | 62,070,000 | 61,075,000 | 57,667,000 | 56,639,000 | 56,788,000 | 57,097,000 | 58,664,000 | 58,756,000 | 58,715,000 | 58,698,000 |
| Property, plant and equipment | US$ in thousands | 2,807,000 | 2,827,000 | 2,783,000 | 2,771,000 | 2,764,000 | 2,774,000 | 2,626,000 | 2,613,000 | 2,619,000 | 2,546,000 | 2,500,000 | 2,538,000 | 2,546,000 | 2,627,000 | 2,658,000 | 2,714,000 | 2,756,000 | 2,794,000 | 2,462,000 | 2,412,000 |
| Fixed asset turnover | 18.92 | 19.00 | 19.65 | 20.26 | 21.60 | 22.68 | 24.67 | 25.04 | 24.75 | 24.93 | 24.83 | 24.06 | 22.65 | 21.56 | 21.36 | 21.04 | 21.29 | 21.03 | 23.85 | 24.34 |
January 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $53,105,000K ÷ $2,807,000K
= 18.92
Fixed asset turnover is a key financial ratio used to evaluate a company's efficiency in generating sales revenue relative to its investment in fixed assets. A higher fixed asset turnover indicates that the company is using its fixed assets more efficiently to generate sales.
Based on the data provided, HP Inc's fixed asset turnover has been consistently declining over the past quarters, from 25.06 in Q2 2022 to 18.91 in Q1 2024. This decreasing trend suggests that HP Inc is becoming less efficient in utilizing its fixed assets to generate sales revenue.
The gradual decline in fixed asset turnover may indicate potential inefficiencies in HP Inc's operations, such as underutilization of assets, poor asset management, or decreasing sales relative to fixed asset investment. Investors and analysts may need to further investigate the reasons behind this trend to assess the company's operational efficiency and sustainability in the long term.
Peer comparison
Jan 31, 2024