HP Inc (HPQ)
Payables 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 |
| Payables | US$ in thousands | 16,903,000 | 14,046,000 | 15,303,000 | 16,075,000 | 14,704,000 |
| Payables turnover | 2.47 | 3.01 | 3.31 | 3.11 | 3.14 |
October 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $41,741,000K ÷ $16,903,000K
= 2.47
The payables turnover ratio for HP Inc has shown a decreasing trend over the past five years. The ratio was 3.14 in 2020, 3.11 in 2021, 3.31 in 2022, 3.01 in 2023, and 2.47 in 2024. This indicates that the company took longer to pay its accounts payable in 2024 compared to previous years. A declining payables turnover ratio may suggest inefficiencies in managing vendor payments or potential liquidity issues. Further analysis of the company's payables management and cash flow situation may be necessary to understand the reasons behind this trend and its implications for the company's financial health.
Peer comparison
Oct 31, 2024