HP Inc (HPQ)
Receivables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 53,559,000 | 53,321,000 | 52,998,000 | 53,105,000 | 53,718,000 | 54,675,000 | 56,127,000 | 59,695,000 | 62,910,000 | 64,784,000 | 65,425,000 | 64,827,000 | 63,460,000 | 62,070,000 | 61,075,000 | 57,667,000 | 56,639,000 | 56,788,000 | 57,097,000 | 58,664,000 |
| Receivables | US$ in thousands | 7,297,000 | 6,205,000 | 6,015,000 | 5,223,000 | 5,586,000 | 6,235,000 | 5,436,000 | 5,591,000 | 1,270,000 | 6,600,000 | 7,166,000 | 7,621,000 | 7,844,000 | 7,126,000 | 6,950,000 | 7,558,000 | 7,473,000 | 7,297,000 | 7,240,000 | 6,129,000 |
| 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 |
October 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $53,559,000K ÷ $7,297,000K
= 7.34
The receivables turnover ratio of HP Inc has fluctuated over the past 20 quarters, indicating changes in the company's efficiency in collecting payments from customers.
The trend shows that the ratio generally ranged between 7 and 10 times, with occasional spikes. The ratio peaked at 49.54 in October 2022, implying that HP Inc collected its receivables almost 50 times during that period, which could be an anomaly or a strategic initiative to manage working capital.
Overall, the range of 7 to 10 turnover times suggests that HP Inc is managing its accounts receivable effectively. High turnover ratios imply that the company is efficient in collecting payments, while low ratios could indicate potential issues in collecting receivables timely.
It is also noteworthy that there were periods of decreasing turnover ratios (e.g., April 2021 to January 2022), which could signal difficulties in collecting payments or changes in sales or credit policies that impacted the ratio.
In summary, the receivables turnover ratio analysis indicates HP Inc's ability to efficiently manage its accounts receivable balance, but fluctuations in the ratio suggest a need for continuous monitoring and potential improvements in receivables collection processes.
Peer comparison
Oct 31, 2024