HP Inc (HPQ)
Operating return on assets (Operating ROA)
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,818,000 | 3,456,000 | 4,559,000 | 5,359,000 | 3,462,000 |
| Total assets | US$ in thousands | 39,909,000 | 37,004,000 | 38,494,000 | 38,610,000 | 34,681,000 |
| Operating ROA | 9.57% | 9.34% | 11.84% | 13.88% | 9.98% |
October 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $3,818,000K ÷ $39,909,000K
= 9.57%
HP Inc's operating return on assets (operating ROA) has fluctuated over the past five years, ranging from a high of 13.88% in October 2021 to a low of 9.34% in October 2023. The downward trend continued in the most recent period ending October 2024, with the operating ROA at 9.57%.
A higher operating ROA indicates that the company is generating more operating income from its assets, reflecting better efficiency in asset utilization. On the other hand, a lower operating ROA suggests decreased profitability relative to the assets employed.
Overall, HP Inc's operating ROA has shown some volatility, which may warrant further investigation into the company's operational efficiency and asset management strategies.
Peer comparison
Oct 31, 2024