HP Inc (HPQ)
Liquidity ratios
| 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 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 0.80 | 0.80 | 0.79 |
| Quick ratio | 0.29 | 0.49 | 0.44 | 0.31 | 0.28 | 0.17 | 0.45 | 0.40 | 0.36 | 0.42 | 0.38 | 0.37 | 0.43 | 0.48 | 0.48 | 0.45 | 0.45 | 0.50 | 0.49 | 0.47 |
| Cash ratio | 0.07 | 0.26 | 0.19 | 0.08 | 0.06 | 0.12 | 0.20 | 0.16 | 0.11 | 0.15 | 0.12 | 0.12 | 0.16 | 0.20 | 0.19 | 0.16 | 0.19 | 0.18 | 0.20 | 0.15 |
HP Inc's liquidity ratios provide insights into the company's ability to meet its short-term financial obligations.
The current ratio, which measures the company's ability to pay off its current liabilities with its current assets, has been fluctuating over the quarters but generally hovers around below 1. This suggests that HP Inc may be facing challenges in meeting its short-term obligations with its current assets.
The quick ratio, a more stringent liquidity measure that excludes inventory from current assets, also shows a similar trend, remaining below 1 for most quarters. This indicates that HP Inc may have difficulties in meeting its immediate liabilities without relying on the sale of inventory.
The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, also shows a downward trend and remains consistently low. This indicates that HP Inc may have a limited amount of cash available to cover its short-term liabilities.
Overall, the liquidity ratios of HP Inc paint a picture of potential liquidity challenges, as all three ratios consistently fall below the ideal ratios of 1 for current ratio, quick ratio, and cash ratio. It may be important for HP Inc to closely monitor its liquidity position and take necessary steps to improve its liquidity management to ensure financial stability in the short term.
See also:
HP Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -19.75 | -24.17 | -16.54 | -14.26 | -12.68 | -48.04 | -14.25 | -16.49 | -21.43 | -14.28 | -15.42 | -15.74 | -16.86 | -20.90 | -19.44 | -16.07 | -22.62 | -19.90 | -24.29 | -19.26 |
The cash conversion cycle of HP Inc has shown fluctuating trends over the past eight quarters. It decreased from -10.44 days in Q2 2022 to a low of -18.38 days in Q4 2023 before improving to -13.46 days in Q1 2024. The negative values indicate that HP Inc is efficient in managing its working capital, as it takes less time to convert its investments in inventory into cash from sales. This implies that HP Inc is able to quickly recover its cash flow, which is a positive sign for the company's liquidity and operational efficiency. The company should continue to monitor and manage its cash conversion cycle effectively to sustain its financial health.