HP Inc (HPQ)
Net profit margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,263,000 | 3,132,000 | 6,541,000 | 2,844,000 | 3,152,000 |
| Revenue | US$ in thousands | 53,718,000 | 62,910,000 | 63,460,000 | 56,639,000 | 58,756,000 |
| Net profit margin | 6.07% | 4.98% | 10.31% | 5.02% | 5.36% |
October 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $3,263,000K ÷ $53,718,000K
= 6.07%
To analyze the net profit margin of HP Inc over the past five years, we observe a fluctuating trend. In 2023, the net profit margin increased to 6.07% from 5.09% in 2022, indicating improved efficiency in generating profits from sales. However, the net profit margin was notably lower compared to the 10.24% achieved in 2021, suggesting a decline in profitability. The net profit margin in 2020 was similar to the 2023 figure, at 5.02%, while in 2019, it was slightly higher at 5.36%.
This fluctuation in net profit margin suggests that HP Inc's ability to convert sales into profit has varied over the years. The decrease in 2023 compared to 2021 may trigger further scrutiny to understand the factors influencing the profitability of the company. Therefore, a comprehensive analysis of the company's cost structure, pricing strategies, and revenue growth is essential to determine the underlying reasons for the fluctuating net profit margin.
Peer comparison
Oct 31, 2023