Balance Sheet: Assets

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

HP Inc., consolidated balance sheet: assets

US$ in millions

	Oct 31, 2018	Oct 31, 2017	Oct 31, 2016	Oct 31, 2015	Oct 31, 2014	Oct 31, 2013
Cash and cash equivalents	5,166)	6,997)	6,288)	17,433)	15,133)	12,163)
Accounts receivable, net	5,113)	4,414)	4,114)	13,363)	13,832)	15,876)
Financing receivables	—)	—)	—)	2,918)	2,946)	3,144)
Inventory	6,062)	5,786)	4,484)	6,485)	6,415)	6,046)
Value-added taxes receivable	865)	857)	795)	2,481)	2,169)	2,425)
Available-for-sale investments	711)	1,149)	—)	—)	—)	—)
Supplier and other receivables	2,025)	1,891)	1,700)	2,749)	2,378)	2,579)
Prepaid and other current assets	1,445)	1,224)	1,087)	4,116)	4,518)	4,238)
Deferred tax assets	—)	—)	—)	2,242)	2,754)	3,893)
Other current assets	5,046)	5,121)	3,582)	11,588)	11,819)	13,135)
Current assets	21,387)	22,318)	18,468)	51,787)	50,145)	50,364)
Property, plant and equipment	2,198)	1,878)	1,736)	11,090)	11,340)	11,463)
Goodwill	5,968)	5,622)	5,622)	32,941)	31,139)	31,124)
Intangible assets	—)	—)	—)	2,014)	2,128)	3,169)
Financing receivables, net	—)	—)	—)	3,676)	3,613)	3,878)
Tax indemnifications receivable	953)	1,695)	1,591)	—)	—)	—)
Deferred tax assets	2,431)	342)	254)	871)	740)	1,346)
Deferred costs	—)	—)	—)	742)	755)	999)
Other	1,685)	1,058)	1,339)	3,761)	3,346)	3,333)
Other non-current assets	5,069)	3,095)	3,184)	5,374)	4,841)	5,678)
Noncurrent assets	13,235)	10,595)	10,542)	55,095)	53,061)	55,312)
Total assets	34,622)	32,913)	29,010)	106,882)	103,206)	105,676)

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).

Cash and cash equivalents: There is an initial increase in cash and cash equivalents from 2013 to 2015, reaching a peak at 17,433 million US dollars. However, this is followed by a sharp decline in 2016 to 6,288 million, with a slight increase thereafter but ending lower than the 2013 figure at 5,166 million in 2018.
Accounts receivable, net: The net accounts receivable decreased consistently from 15,876 million in 2013 to a low of 4,114 million in 2016. From 2016 to 2018, this figure demonstrates a gradual recovery but remains significantly lower than the initial years.
Inventory: Inventory levels showed a gradual increase from 6,046 million in 2013 to 6,485 million in 2015, then a decline in 2016 to 4,484 million. This was followed by a recovery phase, with inventory reaching 6,062 million by 2018, close to the earlier peak.
Current assets: Current assets remained relatively stable around 50,000 million US dollars between 2013 and 2015. Subsequently, there was a sharp reduction in 2016 to 18,468 million, with minor increases in the following years, ending at 21,387 million in 2018, indicating a significant decrease in liquid or short-term assets.
Property, plant and equipment: This asset category decreased gradually from 11,463 million in 2013 to 11,090 million in 2015, then dropped significantly to 1,736 million in 2016. Thereafter, it showed a slow upward trend, ending at 2,198 million in 2018, which indicates a major shift or reclassification of assets around 2016.
Goodwill: Goodwill remained relatively stable around 31,000 million US dollars from 2013 to 2014, increased to 32,941 million in 2015, then sharply decreased to approximately 5,622 million in 2016 where it remained fairly steady through 2017 and slightly increased in 2018. This suggests a significant impairment or divestiture occurred around 2016.
Noncurrent assets: Noncurrent assets followed a similar pattern as current assets, remaining stable just above 55,000 million between 2013 and 2015, before decreasing sharply to 10,542 million in 2016. A minor increase occurred over the next two years, reaching 13,235 million in 2018. This drop implies a substantial change in long-term asset holdings or accounting treatment.
Total assets: Total assets reported steady values above 100,000 million US dollars from 2013 to 2015. A drastic reduction took place in 2016 to 29,010 million, followed by gradual increases to 32,913 million in 2017 and 34,622 million in 2018. This pattern indicates a major restructuring, asset reclassification, or disposal of assets during 2016.
Other notable items: Several specific receivables and assets categories, including financing receivables, deferred tax assets, and intangible assets, show incomplete data after 2015, suggesting changes in reporting or asset classification. Available-for-sale investments appeared only in 2017 and 2018 with values of 1,149 and 711 million, respectively. Tax indemnifications receivable and deferred tax assets show variability, particularly a spike in deferred tax assets in 2018.
Summary: The financial data reveals a period of relative stability from 2013 to 2015, followed by a substantial contraction across all key balance sheet categories in 2016. This is characterized by significant reductions in cash, receivables, inventory, property, goodwill, and total assets. Post-2016, a slow recovery or stabilization occurs but asset levels remain considerably lower than in the initial years. The data implies a major corporate event such as divestiture, restructuring, or change in accounting policies around 2016, profoundly impacting the asset base and structure.

Assets: Selected Items

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HP Inc. (NYSE:HPQ)

Balance Sheet: Assets

Assets: Selected Items

Current Assets: Selected Items