HP Inc (HPQ)
Inventory turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 41,741,000 | 42,210,000 | 50,647,000 | 50,053,000 | 46,202,000 |
| Inventory | US$ in thousands | 7,720,000 | 6,862,000 | 7,614,000 | 7,930,000 | 5,963,000 |
| Inventory turnover | 5.41 | 6.15 | 6.65 | 6.31 | 7.75 |
October 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $41,741,000K ÷ $7,720,000K
= 5.41
HP Inc's inventory turnover has fluctuated over the past five years, ranging from a low of 5.41 in 2024 to a high of 7.75 in 2020. Generally, a higher inventory turnover ratio indicates that the company is selling its inventory more efficiently. In this case, the trend of decreasing inventory turnover from 2020 to 2024 may suggest that HP Inc is taking longer to sell its inventory, which could potentially tie up more capital in unsold goods. Further analysis is needed to understand the underlying reasons for this trend and its potential implications for the company's operations and financial performance.
Peer comparison
Oct 31, 2024