HP Inc (HPQ)
Quick ratio
| 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 | US$ in thousands | 2,263,000 | 3,107,000 | 1,673,000 | 1,923,000 | 1,405,000 | 3,145,000 | 5,386,000 | 4,477,000 | 3,394,000 | 4,299,000 | 3,439,000 | 3,424,000 | 4,160,000 | 4,864,000 | 4,679,000 | 4,054,000 | 4,205,000 | 4,537,000 | 4,919,000 | 3,556,000 |
| Short-term investments | US$ in thousands | -671,000 | 3,336,000 | 3,197,000 | — | — | — | — | 5,000 | 5,000 | 5,000 | 8,000 | 12,000 | 274,000 | 274,000 | 57,000 | 52,000 | 348,000 | 56,000 | 17,000 | 17,000 |
| Receivables | US$ in thousands | 5,223,000 | 5,586,000 | 6,235,000 | 5,436,000 | 5,591,000 | 1,270,000 | 6,600,000 | 7,166,000 | 7,621,000 | 7,844,000 | 7,126,000 | 6,950,000 | 7,558,000 | 7,473,000 | 7,297,000 | 7,240,000 | 6,129,000 | 7,982,000 | 7,071,000 | 7,236,000 |
| Total current liabilities | US$ in thousands | 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 | 25,293,000 | 24,579,000 | 23,203,000 |
| 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 |
January 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,263,000K
+ $-671,000K
+ $5,223,000K)
÷ $23,857,000K
= 0.29
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. A higher quick ratio indicates a stronger liquidity position.
Analyzing the quick ratio trend for HP Inc over the past eight quarters, we can observe fluctuations in the ratio. In Q1 2024, the quick ratio was reported at 0.41, slightly lower compared to the previous quarter. This may indicate that HP Inc's ability to cover its current liabilities using its most liquid assets has decreased.
Looking back at the trend, we can see that the quick ratio has been somewhat volatile over the past two years. It reached its peak at 0.55 in Q3 2022, indicating a stronger liquidity position at that point in time. However, it has since fluctuated between 0.40 and 0.47 until the most recent quarter analyzed.
Overall, the quick ratio for HP Inc has shown some variability in the short term, but it is essential to consider other liquidity metrics and qualitative factors to gain a comprehensive understanding of the company's financial health and ability to meet short-term obligations.
Peer comparison
Jan 31, 2024