HP Inc (HPQ)
Cash ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,107,000 | 3,145,000 | 4,299,000 | 4,864,000 | 4,537,000 |
| Short-term investments | US$ in thousands | 3,336,000 | 5,000 | 5,000 | 274,000 | 56,000 |
| Total current liabilities | US$ in thousands | 24,488,000 | 26,189,000 | 29,096,000 | 26,220,000 | 25,293,000 |
| Cash ratio | 0.26 | 0.12 | 0.15 | 0.20 | 0.18 |
October 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,107,000K
+ $3,336,000K)
÷ $24,488,000K
= 0.26
The cash ratio measures a company's ability to pay off its current liabilities using only its cash and cash equivalents. HP Inc's cash ratio has fluctuated in the past five years, with values ranging from 0.19 to 0.24. The decreasing trend from 2020 to 2023 may indicate a diminishing ability to cover short-term obligations solely with its available cash and cash equivalents. This could be a concern if the trend continues, as it may imply a decreased liquidity position. However, it's important to consider the cash ratio in conjunction with other liquidity and solvency metrics to gain a more holistic view of the company's financial health.
Peer comparison
Oct 31, 2023