HP Inc (HPQ)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 20,760,000 | 19,315,000 | 18,593,000 | 16,858,000 | 17,977,000 | 17,463,000 | 17,023,000 | 17,305,000 | 19,736,000 | 22,996,000 | 23,515,000 | 22,432,000 | 22,170,000 | 20,603,000 | 20,091,000 | 20,438,000 | 20,648,000 | 20,269,000 | 19,660,000 | 17,477,000 |
| 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 |
| Current ratio | 0.72 | 0.71 | 0.75 | 0.71 | 0.73 | 0.69 | 0.71 | 0.69 | 0.75 | 0.86 | 0.81 | 0.74 | 0.76 | 0.74 | 0.72 | 0.73 | 0.79 | 0.81 | 0.78 | 0.73 |
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 fluctuated over the past few years, ranging between 0.69 and 0.86. The ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio below 1 indicates that the company may have difficulty meeting its short-term obligations.
HP Inc's current ratio has generally been below 1 in recent periods, suggesting that the company may have faced challenges in meeting its short-term obligations. The ratio improved in the most recent period to 0.72, compared to the previous quarters. This indicates that HP Inc's current assets are 0.72 times its current liabilities as of October 31, 2024, which is slightly better than in previous periods.
Although the current ratio has been fluctuating, it is important for HP Inc to strive for a current ratio above 1 to ensure it can comfortably meet its short-term obligations. Investors and creditors typically prefer a higher current ratio as it indicates a strong liquidity position. HP Inc should continue to monitor and manage its current assets and liabilities to maintain a healthy liquidity position in the future.
Peer comparison
Oct 31, 2024