Current Ratio
since 2005
Calculation
HP Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Oct 31, 2018 | 0.85 | = | 21,387) | ÷ | 25,131) |
| Oct 31, 2017 | 1.00 | = | 22,318) | ÷ | 22,412) |
| Oct 31, 2016 | 0.98 | = | 18,468) | ÷ | 18,808) |
| Oct 31, 2015 | 1.23 | = | 51,787) | ÷ | 42,191) |
| Oct 31, 2014 | 1.15 | = | 50,145) | ÷ | 43,735) |
| Oct 31, 2013 | 1.11 | = | 50,364) | ÷ | 45,521) |
| Oct 31, 2012 | 1.09 | = | 50,637) | ÷ | 46,666) |
| Oct 31, 2011 | 1.01 | = | 51,021) | ÷ | 50,442) |
| Oct 31, 2010 | 1.10 | = | 54,184) | ÷ | 49,403) |
| Oct 31, 2009 | 1.22 | = | 52,539) | ÷ | 43,003) |
| Oct 31, 2008 | 0.98 | = | 51,728) | ÷ | 52,939) |
| Oct 31, 2007 | 1.21 | = | 47,402) | ÷ | 39,260) |
| Oct 31, 2006 | 1.35 | = | 48,264) | ÷ | 35,850) |
| Oct 31, 2005 | 1.38 | = | 43,334) | ÷ | 31,460) |
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), 10-K (reporting date: 2012-10-31), 10-K (reporting date: 2011-10-31), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-10-31), 10-K (reporting date: 2007-10-31), 10-K (reporting date: 2006-10-31), 10-K (reporting date: 2005-10-31).
1 US$ in millions
The analysis of the current ratio from 2005 to 2018 reveals a general long-term decline in short-term liquidity, characterized by periods of stability and a significant structural shift in the balance sheet. While the period began with a current ratio of 1.38, it concluded at 0.85, indicating a tightening of the capacity to cover short-term obligations with current assets.
- Liquidity Trends and Volatility
- Between 2005 and 2015, the current ratio fluctuated primarily between 1.01 and 1.38. A notable dip occurred in 2008, where the ratio fell to 0.98, marking the first instance where current liabilities exceeded current assets. This was followed by a recovery to 1.22 in 2009 and a period of gradual improvement that peaked at 1.23 in 2015.
- Balance Sheet Restructuring
- A substantial reduction in the scale of both current assets and current liabilities is observed in 2016. Current assets decreased from 51,787 million US$ in 2015 to 18,468 million US$ in 2016, while current liabilities dropped from 42,191 million US$ to 18,808 million US$. Despite this drastic contraction in absolute terms, the current ratio remained relatively stable at 0.98 during the transition.
- Recent Liquidity Deterioration
- From 2016 to 2018, a downward trajectory in liquidity is evident. After a brief stabilization at 1.00 in 2017, the current ratio declined to 0.85 by October 31, 2018. This decline was driven by current liabilities increasing to 25,131 million US$ while current assets experienced a slight contraction to 21,387 million US$.
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Comparison to Competitors
HP Inc., current ratio, long-term trends, comparison to competitors
| HP Inc. | Apple Inc. | Arista Networks Inc. | Cisco Systems Inc. | Dell Technologies Inc. | Lumentum Holdings Inc. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|---|---|
| Oct 31, 2018 | 0.85 | 1.12 | 4.48 | 2.29 | — | 5.27 | 1.89 |
| Oct 31, 2017 | 1.00 | 1.28 | 4.28 | 3.03 | — | 5.05 | 1.88 |
| Oct 31, 2016 | 0.98 | 1.35 | 3.32 | 3.16 | — | 2.82 | 2.58 |
| Oct 31, 2015 | 1.23 | 1.11 | 4.15 | 3.23 | — | 2.55 | 2.01 |
| Oct 31, 2014 | 1.15 | 1.08 | 4.71 | 3.39 | — | — | 2.10 |
| Oct 31, 2013 | 1.11 | 1.68 | — | 2.95 | — | — | 2.16 |
| Oct 31, 2012 | 1.09 | 1.50 | — | 3.49 | — | — | 2.19 |
| Oct 31, 2011 | 1.01 | 1.61 | — | 3.27 | — | — | 2.63 |
| Oct 31, 2010 | 1.10 | 2.01 | — | 2.67 | — | — | 2.15 |
| Oct 31, 2009 | 1.22 | 1.88 | — | 3.24 | — | — | 2.47 |
| Oct 31, 2008 | 0.98 | 2.46 | — | 2.58 | — | — | 2.05 |
| Oct 31, 2007 | 1.21 | 2.36 | — | 2.36 | — | — | 2.21 |
| Oct 31, 2006 | 1.35 | 2.24 | — | 2.27 | — | — | — |
| Oct 31, 2005 | 1.38 | 2.96 | — | 1.37 | — | — | — |
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), 10-K (reporting date: 2012-10-31), 10-K (reporting date: 2011-10-31), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-10-31), 10-K (reporting date: 2007-10-31), 10-K (reporting date: 2006-10-31), 10-K (reporting date: 2005-10-31).
Comparison to Sector (Technology Hardware & Equipment)
HP Inc., current ratio, long-term trends, comparison to sector (technology hardware & equipment)
| HP Inc. | Technology Hardware & Equipment | |
|---|---|---|
| Oct 31, 2018 | 0.85 | 1.36 |
| Oct 31, 2017 | 1.00 | 1.67 |
| Oct 31, 2016 | 0.98 | 1.80 |
| Oct 31, 2015 | 1.23 | 1.60 |
| Oct 31, 2014 | 1.15 | 1.64 |
| Oct 31, 2013 | 1.11 | 2.11 |
| Oct 31, 2012 | 1.09 | 2.13 |
| Oct 31, 2011 | 1.01 | 2.25 |
| Oct 31, 2010 | 1.10 | 2.33 |
| Oct 31, 2009 | 1.22 | 2.44 |
| Oct 31, 2008 | 0.98 | 2.52 |
| Oct 31, 2007 | 1.21 | 2.36 |
| Oct 31, 2006 | 1.35 | 2.26 |
| Oct 31, 2005 | 1.38 | 1.80 |
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), 10-K (reporting date: 2012-10-31), 10-K (reporting date: 2011-10-31), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-10-31), 10-K (reporting date: 2007-10-31), 10-K (reporting date: 2006-10-31), 10-K (reporting date: 2005-10-31).
Comparison to Industry (Information Technology)
HP Inc., current ratio, long-term trends, comparison to industry (information technology)
| HP Inc. | Information Technology | |
|---|---|---|
| Oct 31, 2018 | 0.85 | 1.88 |
| Oct 31, 2017 | 1.00 | 2.04 |
| Oct 31, 2016 | 0.98 | 2.01 |
| Oct 31, 2015 | 1.23 | 2.04 |
| Oct 31, 2014 | 1.15 | 1.98 |
| Oct 31, 2013 | 1.11 | 2.20 |
| Oct 31, 2012 | 1.09 | 2.08 |
| Oct 31, 2011 | 1.01 | 2.12 |
| Oct 31, 2010 | 1.10 | 2.02 |
| Oct 31, 2009 | 1.22 | 2.04 |
| Oct 31, 2008 | 0.98 | 1.80 |
| Oct 31, 2007 | 1.21 | 1.79 |
| Oct 31, 2006 | 1.35 | 1.86 |
| Oct 31, 2005 | 1.38 | 2.02 |
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), 10-K (reporting date: 2012-10-31), 10-K (reporting date: 2011-10-31), 10-K (reporting date: 2010-10-31), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-10-31), 10-K (reporting date: 2007-10-31), 10-K (reporting date: 2006-10-31), 10-K (reporting date: 2005-10-31).