Stock Analysis on Net
Stock Analysis on Net

HP Inc. (NYSE:HPQ)

This company has been moved to the archive! The financial data has not been updated since August 29, 2019.

Analysis of Investments

Microsoft Excel

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

HP Inc., adjustment to net earnings

US$ in millions

Microsoft Excel
12 months ended: Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Net earnings (as reported) 5,327 2,526 2,496 4,554 5,013 5,113
Add: Change in unrealized components of available-for-sale securities (7) 3 (2) (15) 5 (11)
Net earnings (adjusted) 5,320 2,529 2,494 4,539 5,018 5,102

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

HP Inc., adjusted profitability ratios

Microsoft Excel
Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Net Profit Margin
Reported net profit margin 9.11% 4.85% 5.17% 4.41% 4.50% 4.55%
Adjusted net profit margin 9.10% 4.86% 5.17% 4.39% 4.50% 4.54%
Return on Equity (ROE)
Reported ROE — — — 16.40% 18.75% 18.75%
Adjusted ROE — — — 16.35% 18.77% 18.71%
Return on Assets (ROA)
Reported ROA 15.39% 7.67% 8.60% 4.26% 4.86% 4.84%
Adjusted ROA 15.37% 7.68% 8.60% 4.25% 4.86% 4.83%

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. HP Inc. adjusted net profit margin ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. HP Inc. adjusted ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

HP Inc., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
As Reported
Selected Financial Data (US$ in millions)
Net earnings 5,327 2,526 2,496 4,554 5,013 5,113
Net revenue 58,472 52,056 48,238 103,355 111,454 112,298
Profitability Ratio
Net profit margin1 9.11% 4.85% 5.17% 4.41% 4.50% 4.55%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings 5,320 2,529 2,494 4,539 5,018 5,102
Net revenue 58,472 52,056 48,238 103,355 111,454 112,298
Profitability Ratio
Adjusted net profit margin2 9.10% 4.86% 5.17% 4.39% 4.50% 4.54%

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

2018 Calculations

1 Net profit margin = 100 × Net earnings ÷ Net revenue
= 100 × 5,327 ÷ 58,472 = 9.11%

2 Adjusted net profit margin = 100 × Adjusted net earnings ÷ Net revenue
= 100 × 5,320 ÷ 58,472 = 9.10%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. HP Inc. adjusted net profit margin ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
As Reported
Selected Financial Data (US$ in millions)
Net earnings 5,327 2,526 2,496 4,554 5,013 5,113
Total HP stockholders’ equity (deficit) (639) (3,408) (3,889) 27,768 26,731 27,269
Profitability Ratio
ROE1 — — — 16.40% 18.75% 18.75%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings 5,320 2,529 2,494 4,539 5,018 5,102
Total HP stockholders’ equity (deficit) (639) (3,408) (3,889) 27,768 26,731 27,269
Profitability Ratio
Adjusted ROE2 — — — 16.35% 18.77% 18.71%

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

2018 Calculations

1 ROE = 100 × Net earnings ÷ Total HP stockholders’ equity (deficit)
= 100 × 5,327 ÷ -639 = —

2 Adjusted ROE = 100 × Adjusted net earnings ÷ Total HP stockholders’ equity (deficit)
= 100 × 5,320 ÷ -639 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
As Reported
Selected Financial Data (US$ in millions)
Net earnings 5,327 2,526 2,496 4,554 5,013 5,113
Total assets 34,622 32,913 29,010 106,882 103,206 105,676
Profitability Ratio
ROA1 15.39% 7.67% 8.60% 4.26% 4.86% 4.84%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings 5,320 2,529 2,494 4,539 5,018 5,102
Total assets 34,622 32,913 29,010 106,882 103,206 105,676
Profitability Ratio
Adjusted ROA2 15.37% 7.68% 8.60% 4.25% 4.86% 4.83%

Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).

2018 Calculations

1 ROA = 100 × Net earnings ÷ Total assets
= 100 × 5,327 ÷ 34,622 = 15.39%

2 Adjusted ROA = 100 × Adjusted net earnings ÷ Total assets
= 100 × 5,320 ÷ 34,622 = 15.37%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. HP Inc. adjusted ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.