HP Inc (HPQ)
Payables turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 42,210,000 | 50,647,000 | 50,053,000 | 46,202,000 | 47,586,000 |
| Payables | US$ in thousands | 14,046,000 | 15,303,000 | 16,075,000 | 14,704,000 | 14,793,000 |
| Payables turnover | 3.01 | 3.31 | 3.11 | 3.14 | 3.22 |
October 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $42,210,000K ÷ $14,046,000K
= 3.01
The payables turnover ratio for HP Inc has exhibited a declining trend over the past five years, falling from 3.22 in 2019 to 3.01 in 2023. This suggests that the company's ability to efficiently manage its trade payables has weakened slightly. However, it is important to note that the ratio remains above 3 for all years, indicating that HP Inc is able to effectively utilize its accounts payable to support its operations and meet its short-term obligations. Further investigation into the underlying reasons for the decreasing trend in payables turnover would provide more insights into HP Inc's working capital management and supplier relationships.
Peer comparison
Oct 31, 2023