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.

Balance Sheet: Liabilities and Stockholders’ Equity 

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.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

HP Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

Microsoft Excel
Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Notes payable and short-term borrowings 1,463 1,072 78 2,885 3,486 5,979
Accounts payable 14,816 13,279 11,103 15,956 15,903 14,019
Employee compensation and benefits 1,136 894 759 3,608 4,209 4,436
Taxes on earnings 340 214 231 830 1,017 1,203
Accrued restructuring 689 898 901
Other accrued taxes 982 895 755 2,371 2,269 2,703
Warranty 673 660 729 1,147 1,325 1,390
Deferred revenue 1,095 1,012 919 6,199 6,143 6,477
Sales and marketing programs 2,758 2,441 2,312 3,089 2,986 2,823
Other 1,868 1,945 1,922 5,417 5,499 5,590
Other accrued liabilities 7,376 6,953 6,637 18,223 18,222 18,983
Current liabilities 25,131 22,412 18,808 42,191 43,735 45,521
Long-term debt, excluding current portion 4,524 6,747 6,758 21,780 16,039 16,608
Pension, post-retirement, and post-employment liabilities 1,645 1,999 2,705 5,630 6,379 5,098
Deferred tax liability 100 1,410 1,116 295 1,124 2,668
Tax liability 2,063 2,005 1,910 2,593 2,861 2,213
Deferred revenue 1,005 921 865 4,373 3,931 3,907
Other 793 827 737 1,869 2,010 2,005
Other non-current liabilities 5,606 7,162 7,333 14,760 16,305 15,891
Non-current liabilities 10,130 13,909 14,091 36,540 32,344 32,499
Total liabilities 35,261 36,321 32,899 78,731 76,079 78,020
Preferred stock, $0.01 par value; none issued
Common stock, $0.01 par value 16 16 17 18 18 19
Additional paid-in capital 663 380 1,030 1,963 3,430 5,465
Retained earnings (accumulated deficit) (473) (2,386) (3,498) 32,089 29,164 25,563
Accumulated other comprehensive loss (845) (1,418) (1,438) (6,302) (5,881) (3,778)
Total HP stockholders’ equity (deficit) (639) (3,408) (3,889) 27,768 26,731 27,269
Non-controlling interests 383 396 387
Total stockholders’ equity (deficit) (639) (3,408) (3,889) 28,151 27,127 27,656
Total liabilities and stockholders’ equity (deficit) 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).


Current Liabilities
Current liabilities demonstrate a notable decline between 2013 and 2016, dropping from $45.5 billion to $18.8 billion. Following this reduction, current liabilities increased gradually in 2017 and 2018, reaching $25.1 billion. This trend is reflected across many components such as notes payable and short-term borrowings, which fell sharply to $78 million in 2016 before rising to $1.46 billion in 2018. Accounts payable show a similar pattern, with a significant dip in 2016 and a subsequent steady recovery.
Long-Term Debt and Non-Current Liabilities
Long-term debt, excluding the current portion, exhibits volatility with an initial increase from $16.6 billion in 2013 to $21.8 billion in 2015 followed by a steep decline to $4.5 billion in 2018. Non-current liabilities also show a substantial decrease, particularly after 2015, falling from $36.5 billion to $10.1 billion in 2018. The reduction in long-term debt and non-current liabilities likely contributed significantly to the total liabilities decline observed after 2015.
Total Liabilities
Total liabilities remained relatively stable from 2013 to 2015, fluctuating around $78 billion. However, beginning in 2016, total liabilities fell dramatically to $32.9 billion, before inclining slightly to $35.3 billion by 2018. This substantial reduction coincides with decreases in both current and non-current liabilities, indicating a strategic effort to reduce overall indebtedness and obligations during that period.
Employee Compensation, Taxes, and Accruals
Employee compensation and benefits expenses dropped sharply from $4.4 billion in 2013 to under $1.1 billion in 2018, with the most pronounced decline occurring in 2016. Taxes on earnings followed a similar decreasing trend, reaching a low point in 2017 but rising slightly in 2018. Various accrued liabilities, including restructuring, other accrued taxes, and warranty liabilities, generally decreased over the periods, especially after 2015, which aligns with the overall contracting liabilities profile.
Revenue-Related Accruals
Deferred revenue shows a strong decline from about $6.5 billion in 2013 to around $900 million in 2016, followed by a modest increase through 2018. This decrease may reflect changes in billing practices or recognition policies affecting liability classification related to customer advances and obligations.
Stockholders’ Equity and Capital Structure
Stockholders’ equity displays a marked downturn starting in 2016, shifting from a positive equity position around $27 billion in 2015 to a deficit reaching nearly $0.6 billion by 2018. Retained earnings shifted from a sizable positive balance to a deficit over the same period, indicating losses or distributions exceeding earnings. Additional paid-in capital also diminished significantly. These changes suggest financial stress or restructuring impacting equity, possibly coinciding with the large liability reductions.
Total Liabilities and Stockholders’ Equity
The sum of total liabilities and stockholders' equity mirrors the liability trends, decreasing sharply from above $105 billion in 2015 to about $29 billion in 2016. A gradual increase was seen up to $34.6 billion in 2018. This movement reflects the substantial changes in both liabilities and equity, pointing to major balance sheet restructuring and shifts in financing strategy during these years.