HP Inc (HPQ)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | -1,323,000 | -1,069,000 | -3,025,000 | -1,644,000 | -2,275,000 |
| Debt-to-capital ratio | 1.19 | 1.13 | 1.39 | 1.35 | 1.70 |
October 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $8,263,000K ÷ ($8,263,000K + $-1,323,000K)
= 1.19
The debt-to-capital ratio of HP Inc has fluctuated over the past five years, ranging from 1.13 to 1.70. In general, a higher debt-to-capital ratio indicates that a company relies more heavily on debt financing.
The ratio was at its lowest in Oct 31, 2023, at 1.13, suggesting relatively lower debt levels compared to total capital employed during that period. Conversely, the highest ratio of 1.70 was seen in Oct 31, 2020, signifying a higher proportion of debt within the capital structure.
Overall, the debt-to-capital ratio for HP Inc has been relatively high, generally above 1. This indicates that the company has had a significant level of debt compared to its total capital base in recent years. It is important for investors and stakeholders to closely monitor this ratio to assess HP Inc's financial leverage and risk profile.
Peer comparison
Oct 31, 2024