HP Inc. (NYSE:HPQ)

The financial data over the six-year period reflects fluctuations in both reported and adjusted net earnings, measured in millions of US dollars.

Reported Net Earnings

Starting at 5113 million in 2013, the reported net earnings show a slight decline in 2014 and 2015, decreasing to 5013 million and 4554 million respectively. A significant drop occurs in 2016, falling nearly by half to 2496 million. This level persists with minor fluctuations in 2017 (2526 million). However, a strong recovery is observed in 2018 with earnings reaching 5327 million, surpassing the initial 2013 value.

Adjusted Net Earnings

The pattern for adjusted net earnings closely mirrors the reported figures throughout the period. Beginning at 5102 million in 2013, the adjusted earnings decrease marginally in 2014 and 2015 to 5018 million and 4539 million respectively. A pronounced decline arises in 2016, when adjusted earnings fall to 2494 million, followed by a brief stabilization in 2017 at 2529 million. In 2018, adjusted earnings recover strongly, increasing to 5320 million, slightly below the reported net earnings but still higher than early years.

Overall, the data reveals a period of relative stability and slight decline until 2015, followed by a sharp downturn in 2016 with stagnation in 2017, and a marked recovery in 2018. The close alignment of reported and adjusted net earnings values suggests minimal impact from adjustments over the reported periods.

Net Profit Margin

The reported net profit margin displays a relatively stable trend from 2013 to 2017, fluctuating slightly between 4.41% and 5.17%. Notably, a significant increase occurs in 2018, with the margin rising sharply to 9.11%. The adjusted net profit margin closely follows this pattern, indicating consistency between reported and investment-adjusted figures, confirming the reliability of profit margin measurements over the period.

Return on Equity (ROE)

The reported ROE shows a decline from 18.75% in both 2013 and 2014 down to 16.4% in 2015. Data for subsequent years is missing, which limits the trend analysis beyond 2015. Similarly, adjusted ROE mirrors this pattern with minimal variance, confirming alignment between reported and adjusted values during available periods.

Return on Assets (ROA)

ROA presents a more dynamic trend. From 2013 to 2015, both reported and adjusted ROA steadily decline from approximately 4.84% to about 4.25%. However, there is a sharp increase starting in 2016, where ROA jumps to 8.6%, followed by a slight decrease in 2017 to approximately 7.67%, and subsequently another considerable increase in 2018 reaching 15.39%. This volatility suggests improvements in asset utilization and profitability, especially notable in the last recorded year. The close similarity between reported and adjusted ROA figures indicates consistency in asset performance measurement.

Overall Insights

Over the analyzed period, the financial performance indicators demonstrate overall positive development, particularly marked by substantial improvements in net profit margin and ROA in the most recent year. The decline in ROE prior to 2016 and incomplete data thereafter restrict a full understanding of equity returns but suggest potential challenges or restructuring during that period. The strong alignment between reported and adjusted metrics throughout all categories enhances confidence in the financial data's accuracy and integrity.

Net Earnings

The reported net earnings exhibited a decline from 5,113 million US dollars in 2013 to 2,496 million US dollars in 2016, marking a reduction of more than 50%. In the following years, there was a recovery trend, with earnings increasing to 2,526 million in 2017 and then more than doubling to 5,327 million in 2018. This pattern mirrors the adjusted net earnings, which closely track the reported figures, indicating minimal adjustments between reported and adjusted earnings.

Net Profit Margin

The reported net profit margin showed a gradual decrease from 4.55% in 2013 to 4.41% in 2015, before experiencing a notable rise to 5.17% in 2016. The margin slightly receded to 4.85% in 2017 but then sharply increased to 9.11% in 2018, almost doubling from the previous year. The adjusted net profit margin follows the same trend pattern with values aligning closely to the reported figures throughout the period under review.

Overall Trends

Both reported and adjusted net earnings and profit margins indicate a period of contraction during 2015-2016, followed by a strong recovery in 2018. The similarity between reported and adjusted figures suggests that the adjustments made to earnings were minimal and did not significantly impact the profit margin calculations. The peak in 2018 suggests improved profitability and possibly operational efficiency or favorable market conditions contributing to enhanced financial performance in that year.

The financial data exhibits various trends in net earnings and return on equity (ROE) from 2013 through 2018. The analysis focuses on both reported and investment-adjusted figures.

Net Earnings

Reported net earnings show a generally declining trend from 2013 to 2016, decreasing from 5,113 million US dollars in 2013 to 2,496 million in 2016. This represents a significant reduction over the four-year period. Beginning in 2017, the net earnings stabilize slightly around 2,526 million before experiencing a sharp increase to 5,327 million in 2018. The adjusted net earnings follow a closely similar pattern, indicating consistency between reported and adjusted figures with only minor variations in values.

Return on Equity (ROE)

Reported ROE values demonstrate a decline from 18.75% in 2013 and 2014 to 16.4% in 2015, with no reported data available for subsequent years. Adjusted ROE closely mirrors the reported ROE figures, starting at 18.71% in 2013 and 18.77% in 2014, followed by a decrease to 16.35% in 2015. The absence of ROE data after 2015 limits further trend analysis in this area.

General Observations

The overall earnings trend reflects a period of contraction ending in 2016, followed by a recovery in 2018. The adjusted and reported metrics align closely, indicating consistency in financial measurement approaches. Declining ROE through 2015 may reflect reduced profitability or increased equity base, but the lack of data for later years prevents complete analysis of equity performance post-2015.

The financial data demonstrates several notable trends regarding net earnings and return on assets (ROA) over the six-year period from 2013 to 2018.

Net Earnings

Both reported and adjusted net earnings exhibit a decreasing trend from 2013 through 2016, followed by a substantial recovery in 2018. Reported net earnings start at 5113 million US dollars in 2013 and decline steadily to a low of 2496 million in 2016, representing more than a 50% reduction from the 2013 level. A similar pattern is observed in adjusted net earnings, which closely mirror the reported figures, indicating minimal discrepancies between reported and adjusted calculations.

After 2016, net earnings stabilize slightly in 2017 at approximately 2526 million reported and 2529 million adjusted, before rising sharply in 2018 to 5327 million reported and 5320 million adjusted, effectively surpassing the earnings recorded at the beginning of the period in 2013.

Return on Assets (ROA)

The ROA percentages, both reported and adjusted, reflect a trend consistent with net earnings, though with more pronounced variation in the mid-period years. Initially, ROA remains relatively stable around 4.8% in 2013 and 2014, with a slight decline to approximately 4.25% in 2015.

In 2016, ROA sharply increases to 8.6%, nearly doubling the prior year’s figure, then slightly decreases to around 7.7% in 2017. A significant increase is again observed in 2018, with ROA reaching approximately 15.4%, which is the highest point in the period analyzed and effectively doubles the ROA recorded in 2016.

The close alignment between reported and adjusted ROA values throughout the years highlights consistency in asset utilization metrics, suggesting that adjustments have minimal impact on the overall assessment of asset efficiency.

In summary, the financial metrics over the six-year span reveal a mid-period downturn in profitability followed by a strong rebound in both net earnings and asset returns. This pattern might indicate a period of operational or market challenges culminating in 2016-2017, with a subsequent recovery or improvement in business performance evident in 2018.