HP Inc (HPQ)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	5.99	6.15	6.04	6.21	6.54	6.65	6.34	5.82	5.69	6.31	6.03	6.56	7.02	7.75	7.82	7.22	9.55	8.30	8.36	8.89
Receivables turnover	10.17	9.62	8.77	10.33	10.68	49.54	9.82	9.13	8.51	8.09	8.71	8.79	7.63	7.58	7.78	7.89	9.57	7.36	8.30	8.11
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
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Inventory turnover for HP Inc has been relatively stable over the past eight quarters, ranging from 5.83 to 6.67 times. This indicates that the company efficiently manages its inventory, with an average of around 6 times per year.

Receivables turnover has also shown stability, with values fluctuating slightly between 7.71 and 9.19 times over the same period. This suggests that HP Inc is effective in collecting its accounts receivable, turning them over approximately 8 times a year on average.

Payables turnover has varied between 3.01 and 3.55 times in the past eight quarters, indicating that the company takes on average between about 3 to 3.5 times to pay off its suppliers. This ratio reflects the payment efficiency of the company.

Unfortunately, data for working capital turnover is incomplete or not available for analysis. Working capital turnover measures how effectively a company uses its working capital to generate revenue. Without this data, we are unable to assess HP Inc's efficiency in this aspect.

Average number of days

		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
Days of inventory on hand (DOH)	days	60.94	59.34	60.44	58.76	55.80	54.87	57.55	62.67	64.10	57.83	60.53	55.61	52.03	47.11	46.68	50.52	38.22	43.98	43.67	41.04
Days of sales outstanding (DSO)	days	35.90	37.96	41.62	35.35	34.19	7.37	37.19	39.98	42.91	45.12	41.90	41.53	47.84	48.16	46.90	46.28	38.13	49.59	43.96	45.00
Number of days of payables	days	116.59	121.46	118.61	108.37	102.67	110.28	108.99	119.14	128.44	117.22	117.85	112.88	116.73	116.16	113.02	112.87	98.97	113.47	111.92	105.30

HP Inc's Days of Inventory on Hand (DOH) has shown a relatively stable trend over the quarters analyzed, ranging from 54.73 days to 60.95 days. This indicates that, on average, HP holds its inventory for around 55 to 61 days before it is sold. The slight increase in DOH from Q1 2023 to Q1 2024 suggests HP may be carrying slightly more inventory relative to its sales.

The Days of Sales Outstanding (DSO) metric fluctuated between 39.73 days and 47.32 days during the periods examined. This metric reflects the average number of days it takes for HP to collect revenue from its sales. The decrease in DSO from Q3 2023 to Q2 2023 indicates an improvement in HP's collection process, while the subsequent increase in Q3 2023 could indicate a delay in collections.

The Number of Days of Payables metric for HP ranged between 102.70 days and 121.46 days. A higher number of days of payables implies that HP takes longer to pay off its suppliers. The decrease in Q2 and Q3 2023 compared to the previous quarters indicates that HP may be managing its payables more efficiently during those periods.

Overall, HP Inc's activity ratios suggest that the company may be managing its inventory levels consistently, improving its collection process at times, and adjusting its payment schedules to suppliers. Further analysis in conjunction with other financial metrics would provide a more comprehensive view of the company's operational efficiency.

Long-term

	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
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
Total asset turnover	1.48	1.45	1.49	1.54	1.65	1.63	1.65	1.64	1.67	1.64	1.75	1.77	1.66	1.63	1.66	1.69	1.85	1.76	1.81	1.84

Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate revenue. In the case of HP Inc, we can analyze two key long-term activity ratios:

1. Fixed Asset Turnover:
- HP Inc's fixed asset turnover has been gradually declining from 25.06 in Q2 2022 to 18.91 in Q1 2024. This indicates that the company is generating less revenue for each dollar invested in fixed assets over time. The decreasing trend may suggest underutilization of fixed assets or a shift towards more capital-intensive operations.

2. Total Asset Turnover:
- HP Inc's total asset turnover fluctuated between 1.45 and 1.65 over the past eight quarters. This ratio measures how efficiently the company is utilizing all its assets to generate sales. While there are fluctuations, the trend has been relatively stable, indicating a consistent level of revenue generation relative to total assets.

In conclusion, HP Inc's long-term activity ratios suggest that there may be room for improvement in the efficient utilization of fixed assets to generate revenue. However, the company maintains a stable level of revenue generation relative to its total assets. Further analysis and comparison with industry benchmarks can provide valuable insights into HP Inc's long-term asset efficiency and operational performance.