HP Inc (HPQ)
Return on assets (ROA)
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,775,000 | 3,263,000 | 3,132,000 | 6,541,000 | 2,844,000 |
| Total assets | US$ in thousands | 39,909,000 | 37,004,000 | 38,494,000 | 38,610,000 | 34,681,000 |
| ROA | 6.95% | 8.82% | 8.14% | 16.94% | 8.20% |
October 31, 2024 calculation
ROA = Net income ÷ Total assets
= $2,775,000K ÷ $39,909,000K
= 6.95%
HP Inc's return on assets (ROA) has shown some fluctuation over the past five years. In 2021, the company achieved a notably high ROA of 16.94%, indicating that for every dollar of assets, the company generated an impressive return. This could be attributed to effective asset utilization and operational efficiency during that period.
However, in the subsequent years, HP Inc's ROA decreased, indicating a decline in the company's ability to generate profits from its assets. The ROA dropped to 8.20% in 2020, further decreased to 8.14% in 2022, and decreased again to 6.95% in 2024. These declines may suggest challenges in maintaining efficient asset utilization, managing costs, or generating sufficient revenue relative to the asset base.
Overall, HP Inc's ROA performance over the five-year period demonstrates variability, with a peak in 2021 followed by a downward trend in the subsequent years. This analysis highlights the importance of closely monitoring ROA as a key indicator of the company's efficiency in generating profits from its assets.
Peer comparison
Oct 31, 2024