HP Inc (HPQ)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 41,496,000 | 42,210,000 | 43,461,000 | 44,851,000 | 48,036,000 | 50,647,000 | 51,957,000 | 52,094,000 | 51,353,000 | 50,053,000 | 49,239,000 | 49,239,000 | 46,778,000 | 46,202,000 | 46,106,000 | 45,903,000 | 47,234,000 | 47,586,000 | 47,772,000 | 47,972,000 |
| Payables | US$ in thousands | 13,255,000 | 14,046,000 | 14,123,000 | 13,317,000 | 13,512,000 | 15,303,000 | 15,514,000 | 17,004,000 | 18,070,000 | 16,075,000 | 15,898,000 | 15,228,000 | 14,960,000 | 14,704,000 | 14,276,000 | 14,195,000 | 12,808,000 | 14,793,000 | 14,648,000 | 13,839,000 |
| Payables turnover | 3.13 | 3.01 | 3.08 | 3.37 | 3.56 | 3.31 | 3.35 | 3.06 | 2.84 | 3.11 | 3.10 | 3.23 | 3.13 | 3.14 | 3.23 | 3.23 | 3.69 | 3.22 | 3.26 | 3.47 |
January 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $41,496,000K ÷ $13,255,000K
= 3.13
To analyze the payables turnover of HP Inc, we look at the trend over the past eight quarters. The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the amount of purchases made on credit to the average accounts payable balance.
Based on the data provided:
- The payables turnover ratio ranged from a low of 3.01 in Q4 2023 to a high of 3.55 in Q1 2023.
- Over the past two years, there has been some fluctuation in the payables turnover ratio, but it generally remained within a relatively narrow range of 3.01 to 3.55.
- The average payables turnover ratio for the eight quarters is approximately 3.23.
A high payables turnover ratio indicates that HP Inc is paying its suppliers quickly, which could be a sign of good financial health and effective working capital management. Conversely, a low ratio may suggest that the company is not effectively utilizing trade credit or may be experiencing cash flow issues.
Overall, HP Inc seems to maintain a relatively consistent payables turnover ratio, which suggests a stable relationship with its suppliers and efficient management of accounts payable. However, it is essential to continue monitoring this ratio to ensure optimal working capital practices.
Peer comparison
Jan 31, 2024