HP Inc (HPQ)

Activity ratios

Short-term

Turnover ratios

	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Inventory turnover	5.41	5.33	5.50	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
Receivables turnover	7.34	8.59	8.81	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
Payables turnover	2.47	2.69	2.87	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
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Inventory turnover for HP Inc has shown a declining trend over the past few quarters, indicating that the company is taking longer to sell its inventory. However, the turnover ratio remains relatively stable within a range of 5.33 to 6.65.

Receivables turnover has fluctuated over the periods, with a notable spike in the ratio in the third quarter of FY 2024. This could suggest an improvement in the collection of receivables in that period compared to the previous quarters.

Payables turnover for HP Inc has also fluctuated, with a general downward trend. This indicates that the company is taking longer to pay its suppliers, which may have implications for its relationships with vendors.

The working capital turnover ratio data is missing, so no analysis can be provided for this metric.

Overall, HP Inc's activity ratios show mixed performance in managing its inventory, receivables, and payables turnover over the periods analyzed. The company may need to focus on optimizing its working capital turnover efficiency, as this information is not available for assessment.

Average number of days

		Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Days of inventory on hand (DOH)	days	67.51	68.48	66.42	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
Days of sales outstanding (DSO)	days	49.73	42.48	41.43	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
Number of days of payables	days	147.81	135.80	126.99	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

Days of inventory on hand (DOH) for HP Inc have been relatively stable over the past two years, fluctuating between around 50 to 70 days. This indicates the average number of days HP Inc holds inventory before selling it, with a trend towards slightly higher inventory holding periods recently.

Days of sales outstanding (DSO) show the average number of days it takes for HP Inc to collect payment from its customers. There has been some variability in DSO over the past two years, ranging from around 35 to 50 days. Lower DSO indicates faster collection of receivables, while higher DSO may imply slower collection.

The number of days of payables for HP Inc reflects the average number of days the company takes to pay its suppliers. This ratio has been somewhat consistent, with fluctuations between around 100 to 150 days over the past two years. A higher number of days of payables may suggest that HP Inc is taking longer to pay its suppliers, which could impact relationships and cash flow.

Overall, HP Inc's activity ratios indicate some stability in inventory management and payables, with fluctuations in receivables collection periods. Analyzing these ratios in conjunction with other financial metrics can provide a more holistic view of the company's operational efficiency and effectiveness.

Long-term

	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Fixed asset turnover	18.38	18.83	18.97	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
Total asset turnover	1.34	1.40	1.42	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

The fixed asset turnover ratio for HP Inc has shown a decreasing trend over the past few periods, indicating that the company is generating less revenue from its fixed assets compared to previous periods. This could be a cause for concern as it may suggest that the company's fixed assets are not being utilized as efficiently as before.

On the other hand, the total asset turnover ratio has also fluctuated over the periods but has generally remained at a relatively stable level. This ratio measures the company's ability to generate sales from its total assets, including both fixed and current assets. HP Inc's total asset turnover indicates that the company is consistently generating revenue from its assets at a moderate level.

Overall, while the fixed asset turnover ratio for HP Inc has declined, the total asset turnover ratio has remained relatively stable, suggesting that the company may need to focus on optimizing the utilization of its fixed assets to improve its overall efficiency and profitability in the long term.