HP Inc (HPQ)
Current ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 17,977,000 | 19,736,000 | 22,170,000 | 20,648,000 | 20,177,000 |
| Total current liabilities | US$ in thousands | 24,488,000 | 26,189,000 | 29,096,000 | 26,220,000 | 25,293,000 |
| Current ratio | 0.73 | 0.75 | 0.76 | 0.79 | 0.80 |
October 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $17,977,000K ÷ $24,488,000K
= 0.73
The current ratio of HP Inc has shown a declining trend over the past five years. As of October 31, 2023, the current ratio stands at 0.73, indicating a decrease from the previous year's ratio of 0.76. This implies that the company's short-term liquidity position has weakened, as it now has less current assets to cover its short-term obligations. The decreasing trend in the current ratio could potentially point towards inefficiencies in managing current assets or an increase in short-term liabilities relative to current assets. It is important for the company to closely monitor its current assets and liabilities to ensure that it can meet its short-term obligations as they come due.
Peer comparison
Oct 31, 2023