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 Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

HP Inc., balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel
Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Land, buildings and leasehold improvements 1,893 2,082 2,421 9,709 9,588 9,568
Machinery and equipment, including equipment held for lease 4,216 3,876 3,663 16,766 16,664 16,565
Property, plant and equipment, gross 6,109 5,958 6,084 26,475 26,252 26,133
Accumulated depreciation (3,911) (4,080) (4,348) (15,385) (14,912) (14,670)
Property, plant and equipment, net 2,198 1,878 1,736 11,090 11,340 11,463

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).

Item Description The company
Property, plant and equipment, gross Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. HP Inc. property, plant and equipment, gross decreased from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.
Property, plant and equipment, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. HP Inc. property, plant and equipment, net increased from 2016 to 2017 and from 2017 to 2018.

Asset Age Ratios (Summary)

HP Inc., asset age ratios

Microsoft Excel
Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Average age ratio 64.02% 68.48% 71.47% 58.11% 56.80% 56.14%
Estimated total useful life (years) 14 17 19 9 8 8
Estimated age, time elapsed since purchase (years) 9 12 14 5 5 5
Estimated remaining life (years) 5 5 5 4 3 4

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).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. HP Inc. average age ratio of depreciable property, plant and equipment improved from 2016 to 2017 and from 2017 to 2018.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. HP Inc. estimated total useful life of depreciable property, plant and equipment decreased from 2016 to 2017 and from 2017 to 2018.
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. HP Inc. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2016 to 2017 and from 2017 to 2018.
Estimated remaining life HP Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2016 to 2017 and from 2017 to 2018.

Average Age

Microsoft Excel
Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Selected Financial Data (US$ in millions)
Accumulated depreciation 3,911 4,080 4,348 15,385 14,912 14,670
Property, plant and equipment, gross 6,109 5,958 6,084 26,475 26,252 26,133
Asset Age Ratio
Average age1 64.02% 68.48% 71.47% 58.11% 56.80% 56.14%

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 Average age = 100 × Accumulated depreciation ÷ Property, plant and equipment, gross
= 100 × 3,911 ÷ 6,109 = 64.02%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. HP Inc. average age ratio of depreciable property, plant and equipment improved from 2016 to 2017 and from 2017 to 2018.

Estimated Total Useful Life

Microsoft Excel
Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Selected Financial Data (US$ in millions)
Property, plant and equipment, gross 6,109 5,958 6,084 26,475 26,252 26,133
Depreciation expense 448 353 316 3,100 3,300 3,200
Asset Age Ratio (Years)
Estimated total useful life1 14 17 19 9 8 8

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 Estimated total useful life = Property, plant and equipment, gross ÷ Depreciation expense
= 6,109 ÷ 448 = 14

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. HP Inc. estimated total useful life of depreciable property, plant and equipment decreased from 2016 to 2017 and from 2017 to 2018.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel
Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Selected Financial Data (US$ in millions)
Accumulated depreciation 3,911 4,080 4,348 15,385 14,912 14,670
Depreciation expense 448 353 316 3,100 3,300 3,200
Asset Age Ratio (Years)
Time elapsed since purchase1 9 12 14 5 5 5

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 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 3,911 ÷ 448 = 9

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. HP Inc. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2016 to 2017 and from 2017 to 2018.

Estimated Remaining Life

Microsoft Excel
Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Selected Financial Data (US$ in millions)
Property, plant and equipment, net 2,198 1,878 1,736 11,090 11,340 11,463
Depreciation expense 448 353 316 3,100 3,300 3,200
Asset Age Ratio (Years)
Estimated remaining life1 5 5 5 4 3 4

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 Estimated remaining life = Property, plant and equipment, net ÷ Depreciation expense
= 2,198 ÷ 448 = 5

Asset age ratio Description The company
Estimated remaining life HP Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2016 to 2017 and from 2017 to 2018.