HP Inc (HPQ)
Operating profit margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,456,000 | 4,559,000 | 5,359,000 | 3,462,000 | 3,877,000 |
| Revenue | US$ in thousands | 53,718,000 | 62,910,000 | 63,460,000 | 56,639,000 | 58,756,000 |
| Operating profit margin | 6.43% | 7.25% | 8.44% | 6.11% | 6.60% |
October 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $3,456,000K ÷ $53,718,000K
= 6.43%
The operating profit margin of HP Inc has experienced some fluctuations over the past five years. In 2023, the operating profit margin was 7.86%, a decline from the previous year's 8.34% in 2022. This decrease indicates a slight reduction in the company's ability to generate profit from its core business operations. However, it is noteworthy that the operating profit margin in 2023 remained relatively close to the 2022 level, suggesting a relatively stable performance.
Comparing these figures to the two preceding years, the operating profit margin has displayed a downward trend since 2021 when it stood at 8.84%. The decrease in 2023 and 2022 indicates a potential challenge in maintaining profitability. However, it is important to note that the 7.86% margin in 2023 is still higher than the 6.96% recorded in 2020, suggesting a recovery from the low point in profitability.
In general, while the operating profit margin has shown some variability over the past five years, the company has managed to maintain a relatively moderate level of profitability compared to the lowest point in 2020. This indicates a degree of resilience in generating profits from its core business operations, despite some fluctuations.
Peer comparison
Oct 31, 2023