HP Inc (HPQ)

Cash ratio

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
Cash and cash equivalents US$ in thousands 3,238,000 2,785,000 2,442,000 2,263,000 3,107,000 1,673,000 1,923,000 1,405,000 3,145,000 5,386,000 4,477,000 3,394,000 4,299,000 3,439,000 3,424,000 4,160,000 4,864,000 4,679,000 4,054,000 4,205,000
Short-term investments US$ in thousands 4,632,000 -671,000 3,336,000 3,197,000 5,000 5,000 5,000 8,000 12,000 3,000 274,000 57,000 52,000 348,000
Total current liabilities US$ in thousands 28,687,000 27,043,000 24,839,000 23,857,000 24,488,000 25,190,000 24,034,000 25,053,000 26,189,000 26,809,000 28,906,000 30,199,000 29,096,000 27,667,000 28,029,000 27,880,000 26,220,000 25,026,000 25,276,000 23,867,000
Cash ratio 0.11 0.27 0.10 0.07 0.26 0.19 0.08 0.06 0.12 0.20 0.16 0.11 0.15 0.12 0.12 0.15 0.20 0.19 0.16 0.19

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 of HP Inc has shown fluctuations over the past several quarters, ranging from 0.06 to 0.27. The cash ratio measures the company's ability to cover its short-term liabilities with cash and cash equivalents.

In the most recent quarter ending Oct 31, 2024, the cash ratio stood at 0.11, indicating that the company had $0.11 in cash and cash equivalents for every $1 of current liabilities. This suggests that HP Inc may have had a relatively lower level of liquidity compared to the previous quarter when the ratio was 0.27.

Looking at the trend over the past few quarters, the cash ratio has been somewhat volatile, with fluctuations in the level of cash reserves relative to current liabilities. It is crucial for HP Inc to maintain a healthy cash ratio to ensure it can meet its short-term obligations without relying heavily on external funding sources.

Further analysis of the company's cash management practices and liquidity position would be necessary to fully assess the implications of the fluctuations in the cash ratio and to determine if any strategic adjustments are needed to maintain financial stability and flexibility.


Peer comparison

Oct 31, 2024


See also:

HP Inc Cash Ratio (Quarterly Data)