HP Inc (HPQ)
Operating profit margin
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 3,818,000 | 3,841,000 | 3,853,000 | 3,648,000 | 3,456,000 | 3,183,000 | 3,487,000 | 3,997,000 | 4,559,000 | 5,113,000 | 5,238,000 | 5,343,000 | 5,359,000 | 5,056,000 | 4,454,000 | 3,918,000 | 3,462,000 | 3,414,000 | 3,714,000 | 3,816,000 |
| Revenue (ttm) | US$ in thousands | 53,559,000 | 53,321,000 | 52,998,000 | 53,105,000 | 53,718,000 | 54,675,000 | 56,127,000 | 59,695,000 | 62,910,000 | 64,784,000 | 65,425,000 | 64,827,000 | 63,460,000 | 62,070,000 | 61,075,000 | 57,667,000 | 56,639,000 | 56,788,000 | 57,097,000 | 58,664,000 |
| Operating profit margin | 7.13% | 7.20% | 7.27% | 6.87% | 6.43% | 5.82% | 6.21% | 6.70% | 7.25% | 7.89% | 8.01% | 8.24% | 8.44% | 8.15% | 7.29% | 6.79% | 6.11% | 6.01% | 6.50% | 6.50% |
October 31, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $3,818,000K ÷ $53,559,000K
= 7.13%
HP Inc's operating profit margin has shown a fluctuating trend over the past several quarters. The margin increased from 6.50% in January 2020 to a peak of 8.44% in January 2022, but has since experienced some decline. In the most recent quarter of October 2024, the operating profit margin stood at 7.13%.
While the company has managed to maintain a fairly stable operating profit margin above 6% in the past few years, there is room for improvement to reach the higher levels observed in previous periods. Management should analyze the factors contributing to the fluctuations in the operating profit margin and implement strategies to enhance operational efficiency, cost control, and revenue generation in order to sustain and potentially increase profitability in the future.
Peer comparison
Oct 31, 2024