HP Inc. (NYSE:HPQ)

Current Assets

The current assets exhibited a relatively stable pattern from 2013 to 2015, with values fluctuating slightly around the 50,000 US$ million mark. A notable and substantial decrease occurred in 2016, where current assets fell sharply to 18,468 US$ million, representing a significant decline compared to previous periods. Following this drop, there was a moderate recovery in 2017, with current assets increasing to 22,318 US$ million, though this level remained well below the figures observed prior to 2016. In 2018, current assets experienced a slight decrease to 21,387 US$ million, indicating a relatively stable but subdued level in comparison to the earlier years.

Adjusted Current Assets

Adjusted current assets mirrored the overall trend seen in current assets. From 2013 to 2015, adjusted current assets showed a gradual increase, rising from 46,803 US$ million in 2013 to 49,734 US$ million in 2015. This was followed by a pronounced drop in 2016 to 18,575 US$ million, closely matching the decline observed in total current assets. Subsequently, there was an improvement in 2017 to 22,419 US$ million, with a slight decrease to 21,516 US$ million recorded in 2018. Similar to current assets, the adjusted current assets did not recover to the initial high levels observed before 2016.

Summary of Trends

Both current assets and adjusted current assets maintained a steady range in the earlier years before experiencing a significant contraction in 2016. This sudden decrease indicates a major change in the company's liquidity or asset base during that period. The partial recovery observed in the two subsequent years did not restore asset levels to their previous highs, suggesting either a strategic shift or an impact from external or internal factors influencing asset management or valuation. The close alignment in trends between current assets and adjusted current assets implies consistency in the adjustment methodology and supports the reliability of these observations.

Total Assets

The total assets displayed a relatively stable trend from 2013 to 2015, fluctuating modestly between 103 billion and 107 billion US dollars. However, there is a notable and significant decrease starting in 2016 where total assets dropped sharply to approximately 29 billion US dollars. Subsequently, there is a moderate increase in total assets over 2017 and 2018, reaching around 35 billion US dollars by the end of 2018. This substantial drop between 2015 and 2016 suggests a major restructuring, divestment, or change in reporting scope that significantly impacted reported asset values.

Adjusted Total Assets

The adjusted total assets follow a similar pattern to the total assets, with slight fluctuations around the 100 billion-dollar mark from 2013 to 2015. From 2016 onwards, adjusted total assets also exhibit a sharp decline, descending to about 30 billion US dollars. The years 2017 and 2018 show a slight recovery but remain close to the 33-34 billion dollar range. This adjustment suggests a consistent approach to asset evaluation that corroborates the trend observed in total assets, further confirming a significant shift in asset scale or valuation approach during the 2016 period.

General Insights

The data reflects a period of considerable transition beginning in 2016, with total and adjusted asset values dropping by approximately 70%. This indicates either a structural change in the company's asset base, a possible spin-off, sale, or accounting reclassification. Following this decrease, assets showed modest growth, though values remain substantially below their pre-2016 levels. The adjusted assets maintain alignment with the total assets trend, implying consistent asset management and reporting standards over the observed period despite the marked change.

Current Liabilities

The current liabilities exhibit a general declining trend from 2013 to 2016, decreasing markedly from 45,521 million US dollars in 2013 to 18,808 million US dollars in 2016. After this period of decline, there is a moderate upward trend observed during 2017 and 2018, with values increasing to 22,412 million and 25,131 million US dollars respectively.

Adjusted Current Liabilities

Adjusted current liabilities closely follow the pattern of current liabilities, demonstrating a steady decline from 36,378 million US dollars in 2013 to a low of 17,103 million US dollars in 2016. Subsequently, a rising trend is noted in the years 2017 and 2018, with figures increasing to 20,633 million and 23,305 million US dollars respectively. The adjusted values consistently remain below the reported current liabilities, indicating some form of adjustment or exclusion of certain items in the adjusted figures.

Overall Trend and Insights

The significant reduction in both current and adjusted current liabilities up to 2016 suggests a period of improved short-term financial management or liability reduction. The subsequent increase in liabilities in 2017 and 2018 may reflect increased operational activities, strategic investments, or changes in working capital requirements. The consistent gap between current and adjusted current liabilities indicates that adjustments play a role in presenting a refined picture of short-term obligations.

Total liabilities

The total liabilities exhibit a fluctuating pattern over the six-year period. Starting at approximately 78 billion USD in 2013, there was a slight decrease in 2014 to around 76 billion USD followed by an increase in 2015, surpassing the 2013 level and reaching around 78.7 billion USD. A significant decline is then observed in 2016, with total liabilities dropping markedly to roughly 32.9 billion USD. From 2016 onwards, the liabilities show a marginal upward trend, increasing to about 36.3 billion USD in 2017, followed by a slight decrease to approximately 35.3 billion USD in 2018. This sharp reduction from 2015 to 2016 represents the most notable change during the period under review.

Adjusted total liabilities

Adjusted total liabilities follow a trend broadly similar to total liabilities but at consistently lower levels, indicating certain adjustments or exclusions affecting this measure. Starting at approximately 64.1 billion USD in 2013, the figure remains relatively stable through 2014 and 2015, with only modest increases to around 67.6 billion USD by 2015. A significant decrease is evident in 2016, dropping to roughly 29.9 billion USD, mirroring the pattern seen in total liabilities. Subsequent years show a slight but steady rise, reaching about 33 billion USD in 2017 and 33.3 billion USD in 2018. The adjusted liabilities reveal a substantial restructuring or reclassification impact occurring between 2015 and 2016, followed by stabilization at a lower level.

The analysis of the annual financial data over the period from 2013 to 2018 reveals significant fluctuations in the equity positions reported.

Total HP stockholders’ equity (deficit)

The total stockholders’ equity demonstrated a generally stable trend with a slight decline from 27,269 million USD in 2013 to 27,768 million USD in 2015. However, there was a pronounced reversal in 2016, where this figure dropped sharply to a deficit of 3,889 million USD. Although some recovery is observed in the ensuing years, the equity position remained negative at 639 million USD by 2018, indicating ongoing financial challenges or restructuring effects impacting shareholder equity.

Adjusted total stockholders’ equity (deficit)

The adjusted total stockholders’ equity shows a somewhat parallel pattern but with less volatility than the unadjusted figure. Initially, it decreased modestly from 39,324 million USD in 2013 to 38,775 million USD in 2015. In 2016, it turned negative, albeit by a much smaller margin (-98 million USD), followed by a return to positive territory in 2017 (700 million USD) and a slight decline to 233 million USD in 2018. This adjusted measure suggests that certain adjustments or accounting considerations mitigate the impact seen in the total stockholders’ equity, allowing for a more stable equity position post-2016.

Overall, the data indicates that while the total stockholders’ equity experienced considerable disruption beginning in 2016, adjusted equity metrics suggest a more contained and potentially manageable deficit situation. The trend underscores a period of financial disturbance with partial recovery, the effects of which persisted through 2018.

The financial data indicates significant fluctuations in the company's debt, equity, and capital positions over the presented periods.

Total Reported Debt

This metric exhibits a general decline from $22,587 million in 2013 to $5,987 million in 2018, with a notable decrease observed from 2015 to 2016, where debt falls sharply from $24,665 million to $6,836 million. The declining trend suggests a reduction in debt obligations over the years, particularly after 2015.

Total HP Stockholders’ Equity (Deficit)

Stockholders' equity remains relatively stable and positive from 2013 to 2015, fluctuating slightly between approximately $26,700 million and $27,700 million. However, a significant shift occurs in 2016 when equity turns negative at -$3,889 million, with continued negative values through 2018, although the deficit lessens to -$639 million by 2018, indicating some recovery in equity but still a negative position overall.

Total Reported Capital

Total capital declines markedly from $49,856 million in 2013 to $2,947 million in 2016, before gradually increasing to $5,348 million by 2018. This sharp decrease corresponds with the equity dip and debt reduction seen in the same period, reflecting a contraction of the company's combined debt and equity base during those years.

Adjusted Total Debt

Adjusted debt follows a trend similar to total reported debt, decreasing from $25,193 million in 2013 to $7,247 million in 2018. The substantial drop from 2015 to 2016 mirrors that of reported debt, confirming a pronounced effort in debt reduction or restructuring during this timeframe.

Adjusted Total Stockholders’ Equity (Deficit)

Adjusted equity maintains high positive values from 2013 through 2015, ranging from $38,324 million to $38,775 million. Starting in 2016, adjusted equity falls drastically and approaches neutral levels, moving from a deficit of -$98 million in 2016 to a slight positive value of $233 million by 2018. This indicates a significant shift in adjusted equity position with gradual improvement but limited positive equity by the end of the period.

Adjusted Total Capital

This metric peaks at $65,901 million in 2015 before dropping precipitously to $7,639 million in 2016. Capital then increases modestly to $9,555 million in 2017, and decreases again to $7,480 million in 2018. The sharp decline and subsequent minor fluctuations imply substantial changes in the capital structure during and after 2015, reflecting movements in both equity and debt components.

Overall, the data reveals that the company experienced a major financial restructuring or similar event around 2015-2016, resulting in dramatic reductions in debt and capital, accompanied by a transition from positive to negative equity positions. Since 2016, there is evidence of gradual recovery in equity and capital, albeit remaining at levels significantly lower than earlier years. The trends suggest a company that has undergone significant adjustments to its financial structure, with continuing efforts to stabilize its equity base and manage its debt levels.

Revenue Trends

The net revenue exhibited a decreasing trend from 2013 to 2016, starting at approximately 112.3 billion USD in 2013 and declining to about 48.2 billion USD in 2016. This represents a significant reduction of more than 50% over this period.

From 2017 onwards, net revenue showed a reversal of this downward trend, with a moderate increase to around 52.1 billion USD in 2017 and further growth to roughly 58.5 billion USD in 2018.

Adjusted Net Revenue Trends

Adjusted net revenue followed a pattern closely aligned with the net revenue figures, starting at approximately 111.8 billion USD in 2013, decreasing steadily until 2016 to about 48.2 billion USD, and then increasing in 2017 and 2018 to around 52.2 billion and 58.6 billion USD respectively.

The similarity in the adjusted and reported net revenue suggests relatively stable adjustments applied within these years, maintaining the general revenue trend.

Overall Financial Insights

The data indicates a significant contraction in revenue from 2013 through 2016, followed by a recovery phase beginning in 2017. This could reflect operational challenges, market conditions, or strategic shifts during the declining years, with some level of stabilization and growth resuming in the latter two years.

The parallel nature of net revenue and adjusted net revenue trends further implies consistent financial reporting practices and minimal extraordinary adjustments impacting revenue over the analyzed periods.

Net Earnings

The net earnings exhibited a fluctuating pattern over the observed period. Initially, there was a slight decrease from 5,113 million US dollars in 2013 to 5,013 million in 2014, followed by a more pronounced decline to 4,554 million in 2015. The downward trend continued sharply into 2016 with net earnings falling to 2,496 million. This level remained relatively stable in 2017 at 2,526 million before experiencing a significant recovery in 2018, reaching 5,327 million, which surpasses the starting value in 2013.

Adjusted Net Earnings

Adjusted net earnings showed more variability compared to net earnings. After a strong figure of 5,822 million in 2013, there was a dramatic decrease to 2,389 million in 2014. The value then improved to 3,330 million in 2015, followed by a decline to 2,591 million in 2016. A slight recovery occurred in 2017 with adjusted net earnings of 2,896 million, but this was followed by another drop in 2018 to 2,409 million. Overall, this metric did not reflect the strong rebound observed in the net earnings in 2018.

Comparative Insights

While net earnings showed a recovery in the final year, adjusted net earnings presented a less positive trend, indicating that the underlying adjustments to earnings might be accounting for one-off items or other factors that mitigate the apparent improvement seen in net earnings. The divergence in the final year suggests that the quality or sustainability of the earnings recovery warrants further analysis.