HP Inc (HPQ)
Debt-to-assets ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 8,263,000 | 9,254,000 | 10,796,000 | 6,386,000 | 5,543,000 |
| Total assets | US$ in thousands | 39,909,000 | 37,004,000 | 38,494,000 | 38,610,000 | 34,681,000 |
| Debt-to-assets ratio | 0.21 | 0.25 | 0.28 | 0.17 | 0.16 |
October 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $8,263,000K ÷ $39,909,000K
= 0.21
The debt-to-assets ratio for HP Inc has exhibited some fluctuations over the past five years. In 2024, the ratio stands at 0.21, indicating that 21% of the company's assets are financed through debt. This represents a decrease compared to the previous year, where the ratio was 0.25. The trend shows a gradual decline from 2022 when the ratio was at its highest at 0.28.
The decreasing trend in the debt-to-assets ratio suggests that HP Inc has been relying less on debt to finance its operations and investments, which may be viewed positively by investors and creditors. It indicates that the company has a stronger financial position and is less leveraged, reducing the risk of default.
Overall, the decreasing debt-to-assets ratio for HP Inc over the past five years signals improved financial stability and a more conservative approach to managing its capital structure.
Peer comparison
Oct 31, 2024