HP Inc (HPQ)
Liquidity ratios
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 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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 |
Quick ratio | 0.37 | 0.50 | 0.34 | 0.29 | 0.49 | 0.44 | 0.31 | 0.28 | 0.17 | 0.45 | 0.40 | 0.36 | 0.42 | 0.38 | 0.37 | 0.42 | 0.48 | 0.48 | 0.45 | 0.45 |
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 |
Based on the provided data for HP Inc's liquidity ratios over the past few quarters, it is evident that the company's current ratio has fluctuated within a narrow range, ranging from 0.69 to 0.86. However, the current ratio has generally remained below the ideal threshold of 1, indicating potential concerns regarding the company's ability to cover its short-term obligations with its current assets.
In terms of quick ratios, HP Inc has also displayed variability, ranging from 0.17 to 0.50. The quick ratio provides a more stringent measure of liquidity as it excludes inventory from current assets. The fluctuation in the quick ratio values suggests inconsistencies in HP Inc's ability to meet its short-term obligations quickly without relying on inventory liquidation.
Furthermore, the cash ratio, which measures the company's ability to cover its short-term liabilities using only cash and cash equivalents, has varied between 0.06 and 0.27. The lower values of the cash ratio indicate a limited ability to settle obligations solely with cash on hand.
Overall, based on the liquidity ratios analyzed, HP Inc may face challenges in maintaining sufficient liquidity to meet its short-term financial obligations. Management should closely monitor these ratios and consider implementing strategies to improve liquidity, such as optimizing working capital management and cash flow efficiency.
See also:
HP Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
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 conversion cycle | days | -30.57 | -24.84 | -19.14 | -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 |
The cash conversion cycle of HP Inc has exhibited fluctuating trends over the past few years. The company's cash conversion cycle, which represents the time taken to convert inventory to cash, has been negative consistently. This suggests that HP Inc is able to convert its inventory into cash quickly, indicating efficient working capital management.
The cash conversion cycle has ranged from -48.04 days to -12.68 days over the period analyzed. Negative values indicate that the company is able to collect cash from customers before paying suppliers for inventory, contributing to a negative cash conversion cycle.
Overall, the trend of the cash conversion cycle for HP Inc shows a generally efficient working capital management strategy, with the company effectively managing its cash flow and operating cycle. Monitoring this metric over time can provide insights into the company's ability to effectively manage inventory, accounts receivable, and accounts payable.