HP Inc (HPQ)
Operating return on assets (Operating ROA)
| 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 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 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 | 3,877,000 | 3,927,000 | 3,866,000 |
| Total assets | US$ in thousands | 35,846,000 | 37,004,000 | 36,632,000 | 36,366,000 | 36,148,000 | 38,494,000 | 39,247,000 | 39,901,000 | 38,912,000 | 38,610,000 | 35,523,000 | 34,549,000 | 34,737,000 | 34,681,000 | 34,244,000 | 33,773,000 | 31,656,000 | 33,467,000 | 32,405,000 | 31,946,000 |
| Operating ROA | 10.18% | 9.34% | 8.69% | 9.59% | 11.06% | 11.84% | 13.03% | 13.13% | 13.73% | 13.88% | 14.23% | 12.89% | 11.28% | 9.98% | 9.97% | 11.00% | 12.05% | 11.58% | 12.12% | 12.10% |
January 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $3,648,000K ÷ $35,846,000K
= 10.18%
Operating return on assets (ROA) is a key financial ratio that measures a company's ability to generate profits from its assets used in operations. HP Inc's operating ROA has shown a declining trend over the past eight quarters.
In Q1 2023, the operating ROA was at its peak at 13.26%, and it gradually decreased to 11.88% in Q1 2024. This decline indicates that the company's efficiency in generating profits from its operational assets has weakened over time.
HP Inc's operating ROA averaged 12.80% over the eight quarters, indicating that, on average, the company generated $0.128 in operating income for every dollar of assets used in operations during this period.
It is essential for HP Inc to closely monitor its operating ROA and take necessary steps to improve efficiency in utilizing its operational assets to enhance profitability in the future.
Peer comparison
Jan 31, 2024