HP Inc (HPQ)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.21 | 0.22 | 0.25 | 0.26 | 0.25 | 0.25 | 0.28 | 0.29 | 0.28 | 0.26 | 0.21 | 0.16 | 0.17 | 0.19 | 0.14 | 0.14 | 0.16 | 0.17 | 0.12 | 0.12 |
| 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 |
| 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. The debt-to-assets ratio has ranged from 0.12 to 0.29 over the past five years, suggesting that HP Inc has generally maintained a conservative level of debt in relation to its assets.
Meanwhile, the debt-to-capital ratio has fluctuated more significantly, ranging from 1.11 to 3.16 during the same period. This ratio indicates the proportion of debt in the company's capital structure, with higher values suggesting a higher reliance on debt financing. HP Inc's debt-to-capital ratio has shown some volatility, peaking at 3.16 in Jul 2021, indicating a moment of potentially higher financial risk.
The lack of data for the debt-to-equity ratio and financial leverage ratio limits a more comprehensive analysis of HP Inc's solvency from a leverage perspective. It would be beneficial to track these ratios over time to gain a clearer picture of HP Inc's leverage position and financial stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 8.34 | 8.21 | 7.85 | 6.99 | 6.30 | 5.68 | 6.68 | 9.02 | 12.63 | 17.51 | 19.84 | 21.04 | 20.93 | 19.60 | 18.18 | 15.99 | 14.42 | 14.41 | 15.54 | 16.17 |
The interest coverage ratio for HP Inc has shown fluctuations over the periods in question. The ratio indicates the company's ability to meet interest payments on its outstanding debt with its operating income. A higher interest coverage ratio implies greater financial stability and a lower risk of default.
From Oct 31, 2020 to Oct 31, 2021, the interest coverage ratio steadily increased from 14.41 to 20.93, indicating an improvement in HP Inc's ability to cover its interest obligations. This trend continued into the next periods, reaching a peak of 21.04 on Jan 31, 2022.
However, from Apr 30, 2022 to Oct 31, 2023, HP Inc experienced a decline in its interest coverage ratio, dropping to a low of 5.68. This downward trend reversed in the following quarters, with the ratio gradually recovering to 8.34 on Oct 31, 2024.
Overall, HP Inc's interest coverage ratio has demonstrated both improvement and volatility, highlighting the company's ability to generate sufficient operating income to cover its interest expenses, albeit with fluctuations over the periods analyzed.