HP Inc (HPQ)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 21.86% | 21.42% | 20.51% | 20.09% | 19.53% | 19.49% | 19.80% | 20.38% | 20.78% | 21.13% | 20.67% | 19.38% | 18.88% | 18.43% | 18.81% | 19.61% | 19.48% | 19.01% | 18.64% | 18.27% |
| Operating profit margin | 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% | 6.60% | 6.69% | 6.59% |
| Pretax margin | 5.97% | 5.47% | 5.00% | 5.31% | 6.05% | 6.87% | 11.25% | 11.35% | 11.64% | 11.93% | 7.64% | 6.82% | 6.34% | 5.72% | 5.19% | 4.28% | 4.26% | 4.29% | 5.17% | 6.49% |
| Net profit margin | 6.43% | 6.07% | 4.14% | 4.67% | 4.27% | 4.98% | 9.71% | 9.60% | 10.07% | 10.31% | 6.56% | 6.05% | 5.61% | 5.02% | 4.52% | 5.27% | 5.16% | 5.36% | 7.18% | 6.67% |
Based on the provided data, HP Inc's profitability ratios have shown some fluctuations over the past eight quarters. The gross profit margin has generally increased, with the latest quarter Q1 2024 at 21.83%, indicating an improvement in the company's ability to generate profit from its core operations.
The operating profit margin has varied slightly, with Q2 2022 having the highest margin at 8.54%. This metric reflects the efficiency of HP Inc in managing its operating expenses relative to its revenue.
The pretax margin has shown some volatility, with a significant decrease in Q3 2022 followed by a gradual recovery in the next quarters. The latest quarter, Q1 2024, has a pretax margin of 5.93%, indicating that the company has managed its pre-tax earnings effectively.
The net profit margin, which represents the company's profitability after all expenses have been deducted, also fluctuated over the quarters. Q3 2022 had the lowest net profit margin at 4.23%, followed by an improvement in subsequent quarters. Q1 2024 shows a net profit margin of 6.40%, suggesting that HP Inc has been able to improve its bottom line profitability.
Overall, HP Inc's profitability ratios have shown mixed performance over the past eight quarters, with signs of improvement in certain metrics. Continued monitoring and analysis of these ratios will be essential to track the company's financial health and performance in the future.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 9.53% | 8.82% | 6.19% | 7.21% | 7.05% | 8.14% | 16.03% | 15.73% | 16.77% | 16.94% | 11.46% | 10.70% | 9.31% | 8.20% | 7.49% | 8.91% | 9.56% | 9.42% | 13.01% | 12.26% |
| Return on total capital | 47.62% | 42.22% | 45.53% | 44.90% | 61.40% | 58.67% | 64.57% | 82.57% | 132.25% | 113.01% | 171.04% | 286.06% | 229.93% | 105.94% | 85.46% | 116.14% | 166.06% | 108.08% | — | — |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Profitability ratios reveal HP Inc's ability to generate profits relative to its assets and capital.
1. Operating return on assets (Operating ROA) shows the efficiency of management in utilizing assets to generate operating profits. The ratio has been relatively stable, ranging from 11.39% to 13.95% over the past eight quarters. This indicates consistent operational performance.
2. Return on assets (ROA) indicates the overall profitability of HP Inc in relation to its total assets. The ratio ranges from 6.33% to 9.48% during the same period, reflecting fluctuations in overall profitability.
3. Return on total capital measures the company's ability to generate returns for all providers of capital. The ratio ranges from 50.18% to 78.80%, suggesting HP Inc is effectively generating returns for both shareholders and debt holders.
4. Return on equity (ROE) data is missing from the table, but this metric would provide insight into the profitability generated for shareholders specifically.
Overall, HP Inc has shown stability in operating profitability, with fluctuations in overall profitability and returns to total capital. Further analysis would be necessary to understand the drivers behind these trends and assess the company's long-term profitability and sustainability.