HP Inc (HPQ)
Pretax margin
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 2,937,000 | 4,324,000 | 7,568,000 | 3,240,000 | 2,523,000 |
| Revenue | US$ in thousands | 53,718,000 | 62,910,000 | 63,460,000 | 56,639,000 | 58,756,000 |
| Pretax margin | 5.47% | 6.87% | 11.93% | 5.72% | 4.29% |
October 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $2,937,000K ÷ $53,718,000K
= 5.47%
The pretax margin, which measures the company's profitability before taxes, has varied over the past five years for HP Inc. In fiscal year 2023, the pretax margin decreased to 5.47%, down from 7.05% in the previous year. This decline may indicate a decrease in the company's ability to generate profits before considering tax implications.
Comparing the current pretax margin to the prior years, we observe a downward trend from fiscal year 2021, in which the pretax margin was 11.83%. The decrease in pretax margin from fiscal year 2021 to 2023 could be a result of various factors, such as changes in revenue, operating expenses, or efficiency in cost management.
It's important to assess the reasons behind the declining pretax margin and evaluate the company's strategies to address this trend in order to ensure sustained profitability.
Peer comparison
Oct 31, 2023