HP Inc (HPQ)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 37,004,000 | 38,494,000 | 38,610,000 | 34,681,000 | 33,467,000 |
| Operating ROA | 9.34% | 11.84% | 13.88% | 9.98% | 11.58% |
October 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $3,456,000K ÷ $37,004,000K
= 9.34%
The operating return on assets (operating ROA) for HP Inc has exhibited a downward trend over the past five years. The operating ROA decreased from 14.54% in Oct 31, 2021, to 11.41% in Oct 31, 2023. This indicates that HP Inc's ability to generate operating income from its assets has declined. The decrease in operating ROA may be attributed to a decrease in operating income relative to its total assets or an increase in total assets without a proportionate increase in operating income. It is essential for the management of HP Inc to closely evaluate the factors contributing to the declining operating ROA and devise strategies to improve the company's operational efficiency and asset utilization.
Peer comparison
Oct 31, 2023