HP Inc (HPQ)
Return on assets (ROA)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,263,000 | 3,132,000 | 6,541,000 | 2,844,000 | 3,152,000 |
| Total assets | US$ in thousands | 37,004,000 | 38,494,000 | 38,610,000 | 34,681,000 | 33,467,000 |
| ROA | 8.82% | 8.14% | 16.94% | 8.20% | 9.42% |
October 31, 2023 calculation
ROA = Net income ÷ Total assets
= $3,263,000K ÷ $37,004,000K
= 8.82%
To analyze HP Inc's return on assets (ROA) based on the provided data, we can observe the trend over the past five years. ROA is a measure of a company's profitability in relation to its total assets.
In 2023, HP Inc's ROA stood at 8.82%, marking a slight increase from the previous year's 8.30%. This indicates that the company generated 8.82 cents in profit for every dollar of assets it possessed.
Comparing the most recent ROA with the data from 2021 and 2022, a noticeable decline is evident as the ROA dropped from 16.84% to 8.30% before recovering slightly in 2023. The significant decrease in 2022 suggests a potential decrease in efficiency in generating profits from its assets.
Although 2023's ROA is lower compared to 2021, it is essential to analyze the trend and the underlying reasons for the fluctuation. Additional context, such as changes in the company's asset base, net income, or market conditions, may offer insights into HP Inc's performance and its efficiency in utilizing its assets to generate profits.
Peer comparison
Oct 31, 2023