HP Inc (HPQ)
Quick ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,238,000 | 3,107,000 | 3,145,000 | 4,299,000 | 4,864,000 |
| Short-term investments | US$ in thousands | — | 70,000 | 5,000 | 5,000 | 274,000 |
| Receivables | US$ in thousands | 7,297,000 | 5,586,000 | 1,270,000 | 7,844,000 | 7,473,000 |
| Total current liabilities | US$ in thousands | 28,687,000 | 24,488,000 | 26,189,000 | 29,096,000 | 26,220,000 |
| Quick ratio | 0.37 | 0.36 | 0.17 | 0.42 | 0.48 |
October 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,238,000K
+ $—K
+ $7,297,000K)
÷ $28,687,000K
= 0.37
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. HP Inc's quick ratio has fluctuated over the past five years, ranging from 0.17 to 0.48.
In 2024, HP Inc's quick ratio stands at 0.37, indicating that for every dollar of current liabilities, the company has $0.37 of highly liquid assets to cover those obligations. This suggests that HP Inc may face challenges in meeting its short-term financial commitments.
Comparing this to previous years, the quick ratio has shown inconsistencies. In 2023 and 2024, the ratio remained relatively stable but below 0.4, signaling a continued strain on liquidity. However, in 2021 and 2020, the quick ratio was higher at 0.42 and 0.48, respectively, indicating better short-term liquidity positions those years.
Overall, HP Inc's quick ratio has shown variability and trended below the ideal quick ratio of 1.0. This may indicate potential liquidity issues and the need for closer monitoring of the company's ability to meet its short-term obligations using its liquid assets.
Peer comparison
Oct 31, 2024