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.

Cash Flow Statement 
Quarterly Data

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 (quarterly data)

US$ in millions

Microsoft Excel
3 months ended: Jul 31, 2019 Apr 30, 2019 Jan 31, 2019 Oct 31, 2018 Jul 31, 2018 Apr 30, 2018 Jan 31, 2018 Oct 31, 2017 Jul 31, 2017 Apr 30, 2017 Jan 31, 2017 Oct 31, 2016 Jul 31, 2016 Apr 30, 2016 Jan 31, 2016 Oct 31, 2015 Jul 31, 2015 Apr 30, 2015 Jan 31, 2015 Oct 31, 2014 Jul 31, 2014 Apr 30, 2014 Jan 31, 2014 Oct 31, 2013 Jul 31, 2013 Apr 30, 2013 Jan 31, 2013
Net earnings 1,179 782 803 1,451 880 1,058 1,938 660 696 559 611 492 783 629 592 1,323 854 1,011 1,366 1,330 985 1,273 1,425 1,414 1,390 1,077 1,232
Depreciation and amortization 190 181 168 140 132 127 129 91 90 89 84 83 85 85 79 1,007 1,023 1,003 1,028 1,075 1,055 1,087 1,117 1,120 1,158 1,170 1,163
Stock-based compensation expense 60 66 107 65 55 63 85 55 46 48 75 42 39 40 61 233 160 129 187 128 132 130 170 102 107 107 184
Restructuring and other charges 17 69 55 40 4 57 31 113 46 140 63 49 31 100 20 591 25 255 146 604 649 252 114 371 81 408 130
Deferred taxes on earnings 207 15 103 (486) 149 397 (3,713) (174) 207 138 67 (577) 378 74 526 (1,598) 898 173 (173) 95 (39) (99) 9 (952) 70 (28) 500
Excess tax benefit from stock-based compensation (2) (2) (1) (1) (21) (6) (9) (109) (9) (16) (6) (27) (1) (1)
Other, net 63 118 (5) 85 36 185 13 65 48 2 19 257 (245) (77) 27 467 479 261 200 78 143 102 24 171 165 152 291
Accounts receivable 81 (314) 211 (514) (15) (234) 272 (238) (504) (325) 614 (163) (166) 190 704 (627) (295) (46) 1,540 355 72 (801) 2,391 (1,542) 273 (349) 2,148
Financing receivables (257) (53) 23 222 80 86 (42) 296 (84) 219 251 98
Inventory (386) 171 191 (15) (571) 86 364 (615) (459) (203) (69) (542) (471) 520 202 137 (520) 277 (224) (211) (476) 126 (19) 441 (585) 289 (149)
Accounts payable 825 (779) (184) 519 1,187 201 (478) 423 1,712 142 (116) 690 1,301 41 (1,104) 389 534 (40) (852) 716 1,596 765 (1,165) 611 980 640 (1,690)
Taxes on earnings (1,123) (11) 11 (412) (134) (1,528) 2,463 318 (68) (102) (75) 983 (372) 29 (534) 938 (1,160) (208) 293 18 139 (17) 170 937 (94) (3) (423)
Restructuring and other (43) (33) (46) (30) (30) (44) (133) (78) (58) (46) (51) (43) (46) (37) (31) (237) (303) (220) (483) (456) (369) (300) (381) (260) (242) (165) (237)
Other assets and liabilities 1,273 596 (552) 125 (179) 682 25 60 19 13 (455) (571) (250) (18) (649) 264 37 (1,145) (2,397) (1,102) (310) 525 (1,134) 488 (847) 7 (685)
Changes in operating assets and liabilities, net of acquisitions 627 (370) (369) (327) 258 (837) 2,513 (130) 642 (521) (152) 354 (4) 725 (1,412) 607 (1,760) (1,359) (1,901) (600) 738 256 158 591 (296) 670 (938)
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities 1,164 79 59 (483) 634 (8) (942) 20 1,079 (104) 156 206 282 946 (700) 1,286 819 453 (622) 1,371 2,662 1,722 1,565 1,402 1,284 2,479 1,330
Net cash provided by (used in) operating activities 2,343 861 862 968 1,514 1,050 996 680 1,775 455 767 698 1,065 1,575 (108) 2,609 1,673 1,464 744 2,701 3,647 2,995 2,990 2,816 2,674 3,556 2,562
Investment in property, plant and equipment (172) (114) (189) (187) (117) (113) (129) (165) (61) (75) (101) (146) (81) (86) (120) (961) (916) (779) (947) (956) (1,060) (840) (997) (919) (880) (767) (633)
Proceeds from sale of property, plant and equipment 62 110 69 6 114 99 81 130 141 132 120 450 146 233 147 127
Purchases of available-for-sale securities and other investments (11) (69) (47) (16) (36) (268) (362) (1,035) (1) (2) (4) (122) (79) (72) (58) (50) (79) (556) (316) (135) (450) (296) (198) (299)
Maturities and sales of available-for-sale securities and other investments 17 410 344 259 243 206 139 229 2 121 3 9 56 123 93 30 123 680 79 465 279 282 431 161
Collateral posted for derivative instruments (2) (30) (24) (240) (293) (608) (372) (540) (204) (54)
Collateral returned for derivative instruments 2 30 24 445 857 53 676 154 125
Payment made in connection with business acquisitions, net of cash acquired (23) (404) (16) (1,020) (7) (27) (2,478) (138) (1) (29) (20) (167)
Proceeds from business divestitures 315 99 61 90 156 6
Net cash (used in) provided by investing activities (189) 296 (318) 87 299 621 (1,723) 6 (1,482) (155) (86) 164 139 (144) (111) (807) (3,088) (801) (838) (794) (804) (977) (217) (944) (661) (554) (644)
Proceeds from (payments of) short-term borrowings with original maturities less than 90 days, net (1) (855) (834) 740 943 (106) (844) 972 39 35 25 33 13 26 (2,559) 775 1,781 77 62 26 58 2 16 (37) (28) (105)
Proceeds from short-term borrowings with original maturities greater than 90 days 412 100 200 887
Proceeds from debt, net of issuance costs 30 24 40 5 4 14,765 4,406 1,288 299 870 2,005 25 55 154 45
Payment of short-term borrowings with original maturities greater than 90 days (412) (97) (969) (118) (3)
Payment of debt (66) (62) (476) (39) (33) (1,985) (41) (22) (21) (17) (24) (30) (3) (2,155) (13,225) (747) (984) (911) (1,184) (2,738) (2,070) (45) (2,248) (1,805) (1,554) (114)
Settlement of cash flow hedges (5) (4) (2) 17 (11) 28 (32)
Net transfer of cash and cash equivalents to Hewlett Packard Enterprise Company (10,375)
Stock-based award activities 18 7 (83) 18 32 40 (38) 45 24 22 (34)
Issuance of common stock under employee stock plans 7 32 7 2 68 80 42 181 54 112 48 83 9 67 157 55
Repurchase of common stock (533) (691) (720) (598) (696) (801) (462) (501) (302) (223) (386) (2) (57) (305) (797) (301) (352) (659) (1,571) (750) (582) (831) (565) (479) (3) (797) (253)
Excess tax benefit from stock-based compensation 2 2 1 1 21 6 9 109 9 16 6 27 1 1
Cash dividends paid (240) (245) (249) (219) (223) (227) (230) (221) (222) (224) (227) (212) (212) (213) (221) (337) (318) (291) (304) (309) (299) (298) (278) (284) (280) (283) (258)
Net cash provided by (used in) financing activities (791) (968) (2,343) (2,084) 135 (2,899) (795) (656) 451 (408) (638) (210) (204) (483) (13,526) (1,540) 3,818 1,186 (2,120) (1,248) (3,465) (3,087) 1,229 (2,960) (2,002) (2,351) (630)
Increase (decrease) in cash and cash equivalents 1,363 189 (1,799) (1,029) 1,948 (1,228) (1,522) 30 744 (108) 43 652 1,000 948 (13,745) 262 2,403 1,849 (2,214) 659 (622) (1,069) 4,002 (1,088) 11 651 1,288

Based on: 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-K (reporting date: 2018-10-31), 10-Q (reporting date: 2018-07-31), 10-Q (reporting date: 2018-04-30), 10-Q (reporting date: 2018-01-31), 10-K (reporting date: 2017-10-31), 10-Q (reporting date: 2017-07-31), 10-Q (reporting date: 2017-04-30), 10-Q (reporting date: 2017-01-31), 10-K (reporting date: 2016-10-31), 10-Q (reporting date: 2016-07-31), 10-Q (reporting date: 2016-04-30), 10-Q (reporting date: 2016-01-31), 10-K (reporting date: 2015-10-31), 10-Q (reporting date: 2015-07-31), 10-Q (reporting date: 2015-04-30), 10-Q (reporting date: 2015-01-31), 10-K (reporting date: 2014-10-31), 10-Q (reporting date: 2014-07-31), 10-Q (reporting date: 2014-04-30), 10-Q (reporting date: 2014-01-31), 10-K (reporting date: 2013-10-31), 10-Q (reporting date: 2013-07-31), 10-Q (reporting date: 2013-04-30), 10-Q (reporting date: 2013-01-31).


The financial data exhibits several notable trends across the reported periods.

Net Earnings
Net earnings demonstrate significant volatility over the periods, with peaks notably in January 2018 (US$ 1,938 million) and a trough observed in October 2016 (US$ 492 million). There is no consistent upward or downward trend, indicating irregular performance fluctuations potentially influenced by external or operational factors.
Depreciation and Amortization
This item generally shows a declining trend from early periods until the mid-2010s, with a sharp decrease observed in 2016, stabilizing at lower levels thereafter. This may reflect changes in asset base or capital expenditure policies.
Stock-Based Compensation Expense
Stock-based compensation expenses exhibit a somewhat cyclical pattern with quarters of increase following quarters of decline, without an evident sustained trend. The expense peaks around 2015, indicating possible changes in employee compensation structures at that time.
Restructuring and Other Charges
Restructuring charges peak sporadically, especially in 2014 and 2015, indicating periods of organizational restructuring or cost management initiatives. These charges diminish substantially after 2016, suggesting stabilization post-restructuring phases.
Deferred Taxes on Earnings
There are large swings in deferred taxes, with notable negative spikes in October 2013 (-US$ 952 million) and January 2018 (-US$ 3,713 million). Positive spikes also occur, reflecting high variability likely tied to tax adjustments or legislative impacts.
Other, Net
Other net income shows irregular fluctuations with large positive amounts early in the dataset and volatile movements afterwards, including some negative entries. These changes may reflect miscellaneous income or expenses that are non-recurring or one-time in nature.
Accounts Receivable
Accounts receivable data is inconsistent with alternating positive and negative values, suggesting variable collection periods or changes in sales volumes. This volatility may impact operating cash flows.
Inventory
Inventory levels also fluctuate widely, indicating varying production or sales activities. Significant negative values in multiple quarters suggest periods of inventory reduction or write-downs, while positive values point to stock accumulation.
Accounts Payable
Accounts payable trends demonstrate sharp movements, with marked increases and decreases, which may reflect the timing of supplier payments or procurement strategies. Some quarters show substantial payables buildup, while others reflect paydowns.
Taxes on Earnings
Taxes on earnings show considerable variability, including extreme negative values (e.g., January 2018 at +US$ 2,463 million and October 2015 at -US$ 1,160 million), suggesting swings in tax liabilities or refund receipts, possibly influenced by earnings volatility and tax planning.
Restructuring and Other (Cash Flow)
Consistent negative cash outflows for restructuring and other expenses occur, indicating ongoing costs related to organizational changes, though the magnitude decreases over time.
Changes in Operating Assets and Liabilities
There is high volatility in changes in operating assets and liabilities, implying an unstable working capital cycle. Notable positive spikes followed by sharp negative swings indicate episodic adjustments or rebalancing of operating capital.
Adjustments to Reconcile Net Earnings to Operating Cash Flow
These adjustments are generally positive, helping bridge net earnings to operating cash flow. Particularly high values early in the dataset reflect significant non-cash expenses or timing differences.
Net Cash Provided by Operating Activities
Operating cash flow generally trended upward until late 2014, though with intermittent decreases thereafter. Some quarters show very strong cash generation (e.g., April 2013 and July 2014), whereas others report lower inflows or even negative balances, indicating uneven cash generation from operations.
Investment in Property, Plant, and Equipment (Capex)
Capital expenditures remain consistently negative, suggesting sustained investment in fixed assets. There is a general decline in the size of these outflows starting around 2016, which could indicate reduced spending or asset base maturity.
Proceeds from Sale of Property, Plant, and Equipment
Receipts from asset sales are typically positive but show a declining trend in later periods, implying lower asset disposals as the years progress.
Purchases and Maturities of Available-for-Sale Securities
Purchases and maturities of securities fluctuate with no consistent pattern, suggesting opportunistic investment activities or liquidity management.
Collateral for Derivative Instruments
The data shows increasing collateral posted in later periods, paired with collateral returned, indicating active derivative position management and possibly greater engagement in hedging activities toward the end of the dataset.
Business Acquisitions and Divestitures
Payments for acquisitions are sporadic but include significant outflows in key periods (e.g., October 2015). Divestiture proceeds appear intermittently, with notable inflows in mid-2016, illustrating occasional portfolio adjustments.
Net Cash Used in Investing Activities
Investing cash flows are predominantly negative, reflecting capital expenditures, acquisitions, and securities purchases. Some periods show less negative or slightly positive values, which may relate to proceeds from divestitures or securities maturities.
Financing Activities
Financing cash flows are highly volatile, shifting from large outflows in early periods to intermittent inflows and back again. Repurchase of common stock is consistently negative over the years, indicating ongoing shareholder returns. Debt transactions are irregular, with some quarters showing substantial new debt issuance or repayments. Dividends paid remain relatively stable, reflecting consistent shareholder distributions.
Increase (Decrease) in Cash and Cash Equivalents
Changes in cash balances are highly variable, with some large positive inflows (e.g., January 2014) and significant decreases in others (e.g., January 2016). The volatility corresponds with the uneven cash flows from operating, investing, and financing activities, suggesting fluctuating liquidity management needs.

Overall, the data reflects a company experiencing considerable operational and financial variability across the periods, with intermittent restructuring, active capital management, and fluctuating earnings and cash flows. The financial activities indicate ongoing efforts to manage capital structure, shareholder returns, and working capital amid evolving business conditions.