Common-Size Income Statement
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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HP Inc., common-size consolidated income statement
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).
- Cost of Revenue
- The cost of revenue as a percentage of net revenue demonstrated an increasing trend over the analyzed period. It rose from approximately 76.9% in 2013 to 81.75% in 2018, indicating a growing share of revenue consumed by costs associated with production or services delivered.
- Gross Profit
- Correspondingly, gross profit margin declined from 23.08% in 2013 to 18.25% in 2018, with notable decreases occurring after 2015. This suggests reduced profitability at the gross level, potentially due to increased costs or pricing pressures.
- Research and Development (R&D)
- R&D expenses as a percentage of net revenue fluctuated mildly, peaking at 3.39% in 2015 before declining to 2.4% by 2018. This indicates fluctuating investment in innovation or product development relative to revenue.
- Selling, General and Administrative (SG&A) Expenses
- SG&A expenses decreased significantly between 2015 and 2016, dropping from approximately 11.79% to 7.95% of net revenue, and then stabilized around 8% in subsequent years. This represents improved cost control or a restructuring of administrative and selling functions.
- Restructuring and Other Charges
- These charges showed volatility with a peak at 1.45% in 2014, but declined substantially to 0.23% by 2018, possibly reflecting completion of restructuring activities and related one-time expenses.
- Acquisition-Related and Amortization of Intangible Assets
- Both categories remained relatively low as a percentage of net revenue throughout the period, with slight fluctuations. Amortization of intangible assets notably reduced to near zero in 2016 and 2017 before a minor increase in 2018, indicating potential changes in intangible asset portfolios.
- Separation Costs, Defined Benefit Plan Settlement Charges, and Impairment Charges
- These items appeared sporadically and with minor amounts, suggesting occasional non-recurring expenses with limited impact on overall financial performance.
- Earnings from Operations
- Operating earnings fluctuated between 5.29% and 7.36% of net revenue, with a dip in 2015 and recovery in 2016. The margin remained relatively stable around 6.7% to 7% in the latter years, reflecting consistent operating profitability despite gross margin pressures.
- Interest Expense and Other Financial Items
- Interest expense on borrowings was relatively low and stable around 0.3% to 0.6%. Loss on extinguishment of debt appeared in 2018. Tax indemnifications varied considerably, with a positive impact in 2016 and a negative in 2018. Other net items had minimal effect but showed some variability.
- Earnings before Taxes
- Pre-tax earnings followed an overall downward trend from 5.8% in 2013 to 5.15% in 2018, peaking at 7.8% in 2016. This pattern reflects variations in operational earnings and financial items impacting profitability before taxes.
- Tax Provision
- The tax provision as a percentage of net revenue fluctuated significantly, from a low of -0.17% in 2015 to a positive 3.96% in 2018, suggesting variability in tax expense and benefits, potentially from tax planning strategies or one-time tax events.
- Net Earnings
- Net earnings from continuing operations displayed stability around 4.4% to 5.5% until 2017, followed by a notable increase to 9.11% in 2018. Net earnings overall mirrored this trend, indicating improved profitability in the latest reporting period. This increase may be attributed to favorable tax treatment or operational improvements.
- Discontinued Operations
- A net loss from discontinued operations was recorded only in 2016 at -0.35%, having a minor adverse effect on net earnings that year.