HP Inc (HPQ)
Gross profit margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 11,508,000 | 12,263,000 | 13,407,000 | 10,437,000 | 11,170,000 |
| Revenue | US$ in thousands | 53,718,000 | 62,910,000 | 63,460,000 | 56,639,000 | 58,756,000 |
| Gross profit margin | 21.42% | 19.49% | 21.13% | 18.43% | 19.01% |
October 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $11,508,000K ÷ $53,718,000K
= 21.42%
The gross profit margin of HP Inc has shown fluctuating trends over the past five years. In the most recent fiscal year ending on October 31, 2023, the gross profit margin increased to 21.42%, up from 19.58% in the previous year. This improvement suggests that HP Inc has been able to effectively manage its production and distribution costs in relation to its revenue, leading to a higher proportion of sales revenue being retained as gross profit.
Comparing the gross profit margin to the preceding years, there has been variability in the margins. In 2021 and 2019, the gross profit margins were 21.13% and 19.01% respectively. However, the margin in 2023 was higher than both of these figures, indicating a potential improvement in the company's cost structure and pricing strategies.
On the other hand, the gross profit margin in 2020 was lower at 18.43% compared to the other years, indicating a potential challenge in managing production and/or distribution costs in that fiscal year.
Overall, while the gross profit margin has shown fluctuations, the recent increase in 2023 may indicate effective cost management and pricing strategies, potentially contributing to improved financial performance for HP Inc. However, it is important to consider other financial metrics and factors to gain a comprehensive understanding of the company's overall financial health.
Peer comparison
Oct 31, 2023