HP Inc (HPQ)
Solvency ratios
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.21 | 0.25 | 0.28 | 0.17 | 0.16 |
| Debt-to-capital ratio | 1.19 | 1.13 | 1.39 | 1.35 | 1.70 |
| Debt-to-equity ratio | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — |
The solvency ratios of HP Inc indicate the company's ability to meet its long-term financial obligations and manage its debt levels effectively.
The Debt-to-assets ratio has shown a decreasing trend over the past five years, from 0.16 in 2020 to 0.21 in 2024. This suggests that HP Inc has been successful in reducing its reliance on debt to finance its assets, indicating a stronger financial position.
The Debt-to-capital ratio has fluctuated over the years, with a peak in 2020 at 1.70 and a decrease to 1.19 in 2024. This ratio measures the proportion of a company's capital that is funded by debt, and the downward trend suggests that HP Inc has been able to lower its debt levels relative to its total capital.
The absence of data for the Debt-to-equity ratio and Financial leverage ratio limits a comprehensive analysis of HP Inc's solvency position. However, based on the available ratios, it appears that HP Inc has been actively managing its debt levels and improving its solvency position over the years. It is important for the company to continue monitoring these ratios to ensure long-term financial stability.
Coverage ratios
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 8.45 | 6.31 | 12.70 | 21.10 | 14.49 |
The interest coverage ratio of HP Inc has exhibited variability over the past five years, indicating fluctuations in the company's ability to cover interest expenses with its operating income. The interest coverage ratio was 8.45 in Oct 31, 2024, showing some improvement from the previous year but still lower than the ratio in Oct 31, 2022. This suggests that HP Inc may have had sufficient operating income to cover its interest expenses, although not as robustly as in the prior years. It is important for investors and creditors to monitor this ratio closely as it provides insights into the company's financial health and ability to service its debt obligations.