HP Inc (HPQ)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 1.21 | 1.13 | 1.32 | 1.33 | 1.59 | 1.39 | 1.30 | 1.31 | 1.58 | 1.35 | 2.33 | 3.16 | 2.90 | 1.70 | 1.50 | 1.23 | 1.71 | 1.33 | — | — |
January 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $9,301,000K ÷ ($9,301,000K + $-1,640,000K)
= 1.21
The debt-to-capital ratio of HP Inc has shown some fluctuation over the past eight quarters. The ratio indicates the proportion of debt in relation to the total capital employed by the company.
In Q1 2024, the debt-to-capital ratio stood at 1.20, showing a slight increase from the previous quarter. This ratio suggests that HP Inc has approximately 120% of its capital funded by debt.
Comparing this to the trend in previous quarters, we see that the ratio has been somewhat volatile, ranging from 1.13 to 1.53 over the past two years. This implies that HP Inc has been utilizing a significant amount of debt to finance its operations and investments.
It is worth noting that a higher debt-to-capital ratio indicates higher financial risk due to increased reliance on debt financing. On the other hand, a lower ratio may suggest a more conservative financial strategy with less leverage and lower risk.
Overall, based on the historical data provided, HP Inc's debt-to-capital ratio has displayed variability, signaling fluctuations in the company's capital structure and financial risk profile.
Peer comparison
Jan 31, 2024