HP Inc (HPQ)
Debt-to-capital ratio
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 8,263,000 | 8,229,000 | 9,327,000 | 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 |
| Total stockholders’ equity | US$ in thousands | -1,323,000 | -1,392,000 | -916,000 | -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 |
| Debt-to-capital ratio | 1.19 | 1.20 | 1.11 | 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 |
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 shown fluctuations over the past several quarters. The ratio stood at 1.19 as of October 31, 2024, indicating that debt accounted for approximately 119% of the company's total capital. This was a slight decrease from the previous quarter's ratio of 1.20.
Looking back over the past few quarters, the debt-to-capital ratio has varied considerably, ranging from a low of 1.11 in April 2024 to a high of 3.16 in July 2021. The ratio has generally been above 1, suggesting that HP Inc has been using more debt than equity to finance its operations.
The trend in the debt-to-capital ratio indicates that HP Inc has been relying heavily on debt to fund its activities, as reflected in the consistently elevated ratios. Investors and creditors may view a high debt-to-capital ratio as a potential risk factor, as a significant portion of the company's capital structure is dependent on borrowed funds.
It is essential for HP Inc to carefully manage its debt levels to ensure financial stability and sustainability in the long term. Monitoring and potentially reducing the debt-to-capital ratio could improve the company's financial health and enhance its ability to weather economic uncertainties.
Peer comparison
Oct 31, 2024