HP Inc (HPQ)
Cash ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,238,000 | 3,107,000 | 3,145,000 | 4,299,000 | 4,864,000 |
| Short-term investments | US$ in thousands | — | 70,000 | 5,000 | 5,000 | 274,000 |
| Total current liabilities | US$ in thousands | 28,687,000 | 24,488,000 | 26,189,000 | 29,096,000 | 26,220,000 |
| Cash ratio | 0.11 | 0.13 | 0.12 | 0.15 | 0.20 |
October 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,238,000K
+ $—K)
÷ $28,687,000K
= 0.11
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
HP Inc's cash ratio has been decreasing over the past five years, from 0.20 in 2020 to 0.11 in 2024. This downward trend suggests that HP Inc may be facing challenges in maintaining sufficient liquid assets to cover its immediate liabilities.
Although a cash ratio of 0.11 in 2024 indicates that HP Inc may have limited cash available relative to its current liabilities, it is important to consider industry benchmarks and the company's overall financial health before drawing definitive conclusions.
Investors and analysts should monitor HP Inc's cash ratio alongside other liquidity metrics to assess the company's ability to manage short-term financial obligations effectively.
Peer comparison
Oct 31, 2024