HP Inc (HPQ)
Current ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 20,760,000 | 17,977,000 | 19,736,000 | 22,170,000 | 20,648,000 |
| Total current liabilities | US$ in thousands | 28,687,000 | 24,488,000 | 26,189,000 | 29,096,000 | 26,220,000 |
| Current ratio | 0.72 | 0.73 | 0.75 | 0.76 | 0.79 |
October 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $20,760,000K ÷ $28,687,000K
= 0.72
The current ratio of HP Inc has been showing a declining trend over the past five years, decreasing from 0.79 in October 2020 to 0.72 in October 2024. This indicates that the company may be facing challenges in meeting its short-term obligations with its current assets. A current ratio below 1 suggests that HP Inc may have difficulty in paying off its current liabilities using its current assets alone. It is important for the company to closely monitor its liquidity position and take necessary steps to improve its current ratio in order to maintain financial stability and meet short-term financial obligations effectively.
Peer comparison
Oct 31, 2024