Stock Analysis on Net

HP Inc. (NYSE:HPQ)

$22.49

This company has been moved to the archive! The financial data has not been updated since August 29, 2019.

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

HP Inc., consolidated cash flow statement

US$ in millions

Microsoft Excel
12 months ended: Oct 31, 2018 Oct 31, 2017 Oct 31, 2016 Oct 31, 2015 Oct 31, 2014 Oct 31, 2013
Net earnings
Depreciation and amortization
Stock-based compensation expense
Provision for doubtful accounts
Provision for inventory
Restructuring and other charges
Deferred taxes on earnings
Excess tax benefit from stock-based compensation
Other, net
Accounts receivable
Financing receivables
Inventory
Accounts payable
Taxes on earnings
Restructuring and other
Other assets and liabilities
Changes in operating assets and liabilities, net of acquisitions
Adjustments to reconcile net earnings to net cash provided by operating activities
Net cash provided by operating activities
Investment in property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchases of available-for-sale securities and other investments
Maturities and sales of available-for-sale securities and other investments
Collateral posted for derivative instruments
Collateral returned for derivative instruments
Payments made in connection with business acquisitions, net of cash acquired
Proceeds from business divestitures, net
Net cash (used in) provided by investing activities
Proceeds from (payment of) short-term borrowings with original maturities less than 90 days, net
Proceeds from short-term borrowings with original maturities greater than 90 days
Proceeds from debt, net of issuance costs
Payment of short term borrowings with original maturities greater than 90 days
Payment of debt
Settlement of cash flow hedges
Net transfer of cash and cash equivalents to Hewlett Packard Enterprise Company
Net proceeds related to stock-based award activities
Issuance of common stock under employee stock plans
Repurchase of common stock
Excess tax benefit from stock-based compensation
Cash dividends paid
Net cash provided by (used in) financing activities
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

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).


Net Earnings
Net earnings show a fluctuating trend over the period analyzed. Starting at $5,113 million in 2013, there was a gradual decline reaching a low of $2,496 million in 2016. Earnings then slightly improved in 2017 and sharply increased to $5,327 million in 2018, indicating a strong recovery after a trough period.
Depreciation and Amortization
This item reveals a significant decline from $4,611 million in 2013 down to $332 million in 2016, followed by a modest increase to $528 million in 2018. Such a trend may reflect changes in asset base or accounting policies during these years.
Stock-Based Compensation Expense
The expense increased steadily from $500 million in 2013 to a peak of $709 million in 2015, then dropped to $182 million in 2016 before rising again to $268 million by 2018. This volatility could be associated with changes in employee incentive plans.
Provisions for Doubtful Accounts and Inventory
Provisions for doubtful accounts remain relatively stable around the $60-$70 million range until 2016, with data unavailable thereafter. Provision for inventory follows a similar pattern with slight variations, declining notably from $275 million in 2013 to $95 million in 2016, without subsequent data.
Restructuring and Other Charges
These charges exhibit high volatility, peaking at $1,619 million in 2014, then decreasing substantially to $132 million in 2018. This decline suggests a reduction in restructuring activities or other associated costs over time.
Deferred Taxes on Earnings
Deferred taxes fluctuate markedly, with negative values in some years (notably -$4,113 million in 2018) and positives in others, indicating tax adjustments or recognition of deferred tax assets/liabilities impacting earnings variably.
Other, Net
This item shows inconsistency, peaking at $1,031 million in 2015 and turning negative in 2016, then recovering by 2018. The volatility implies irregular or nonrecurring transactions affecting this line item.
Changes in Working Capital Components
Accounts receivable and payable demonstrate large swings. Accounts receivable rose sharply in 2014 but turned negative in the later years, whereas accounts payable increased notably in 2017 before declining again. Inventory primarily stays negative, indicating a reduction in inventory levels. Net changes in operating assets and liabilities show considerable fluctuation, with a major negative impact in 2015 (-$4,413 million) and recovery in 2018 (+$1,607 million).
Cash Flow from Operating Activities
Operating cash flow declines steadily from $11,608 million in 2013 to $3,230 million in 2016, then gradually recovers to $4,528 million in 2018. The significant drop coincides with net earnings and operational adjustments during these years.
Investment Activities
Investment in property, plant, and equipment (PPE) peaks in 2014 at nearly $3,853 million, then decreases sharply to below $600 million annually after 2015. Proceeds from sale of PPE generally decline but remain positive. Purchases of available-for-sale securities spike negatively in 2017 (-$1,400 million) but moderate in 2018. Net cash used in investing activities is largest in 2015 (-$5,534 million), with positive cash flow only in 2016 before returning to negative territory.
Financing Activities
Financing cash flow shows a negative balance in most years except 2015, indicating net use of cash for financing activities. Debt issuance peaked in 2015 with net proceeds of $14,735 million, followed by substantial repayments and fluctuations in short-term borrowings. Common stock repurchases increased over the period, notably accelerating in 2018 to $2,557 million.
Liquidity Position
Cash and cash equivalents increased through 2015, reaching $17,433 million, then declined sharply in 2016 to $6,288 million, followed by moderate fluctuations. The large decrease corresponds with a substantial net transfer of cash related to corporate restructuring activities and heavy investing outflows in 2016.
Overall Insights
The data signals a period of significant operational and financial adjustments, particularly around 2015-2016, marked by decreases in earnings, operating cash flows, and liquidity. Restructuring charges, asset base changes, and tax adjustments contributed to volatility. Recovery trends appear in the latter years, with improving net earnings and operating cash flows. Investment activities show a scaling back post-2015, while financing strategies emphasize debt management and increased share repurchases. The company's cash position reflects these dynamics with notable swings over the timeframe.