HP Inc (HPQ)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (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 |
| Long-term debt | US$ in thousands | 9,301,000 | 9,254,000 | 9,236,000 | 10,360,000 | 10,337,000 | 10,796,000 | 10,294,000 | 8,304,000 | 6,368,000 | 6,386,000 | 6,898,000 | 4,917,000 | 4,939,000 | 5,543,000 | 5,981,000 | 3,941,000 | 3,932,000 | 4,780,000 | — | — |
| Total stockholders’ equity | US$ in thousands | -1,640,000 | -1,069,000 | -2,245,000 | -2,593,000 | -3,827,000 | -3,025,000 | -2,376,000 | -1,960,000 | -2,328,000 | -1,644,000 | -3,942,000 | -3,360,000 | -3,235,000 | -2,275,000 | -1,986,000 | -743,000 | -1,634,000 | -1,193,000 | -1,131,000 | -1,487,000 |
| 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% | — | — |
January 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,648,000K ÷ ($9,301,000K + $-1,640,000K)
= 47.62%
HP Inc's return on total capital has been relatively stable over the past eight quarters, ranging from 50.18% to 78.80%. The highest return was observed in Q2 2022 at 78.80%, followed by Q1 2023 at 68.19%. The lowest return was in Q4 2023 at 50.18%. Overall, the return on total capital has shown a consistent ability to generate value from the total capital employed by the company. Looking at the trend, the return on total capital seems to fluctuate but remains at a healthy level, indicating efficient utilization of capital to generate profits. HP Inc appears to be effectively managing its capital resources to drive profitability and create value for its shareholders.
Peer comparison
Jan 31, 2024