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
- Current Assets
- Current assets exhibited an overall increase from 2005 through 2015, rising from 43,334 million US dollars to a peak of 51,787 million US dollars. However, this upward trend ceased dramatically in 2016, when current assets sharply declined to 18,468 million US dollars. Following this drop, a slight recovery was observed in the subsequent two years, with current assets increasing to 22,318 million in 2017 before slightly decreasing again to 21,387 million in 2018.
- Current Liabilities
- Current liabilities showed a consistent upward trend from 31,460 million US dollars in 2005 to a peak of 50,442 million US dollars in 2011. Afterward, liabilities began to decrease gradually until 2015, reaching 42,191 million. Similar to current assets, liabilities dropped sharply in 2016 to 18,808 million but then rose in the next two years, ending at 25,131 million in 2018.
- Current Ratio
- The current ratio fluctuated throughout the analyzed period, starting at 1.38 in 2005, and generally declining to a low of 0.98 in 2008. A moderate recovery was seen after 2008, with values ranging between 1.01 and 1.23 from 2009 to 2015, indicating modest improvements in liquidity. In 2016, the current ratio again declined to 0.98 and hovered near or below 1.00 in the following years, ending at 0.85 in 2018. This indicates a tightening liquidity situation in recent years, with current liabilities increasingly matching or exceeding current assets.
- Insights
- The data indicates a period of growth and stable liquidity from 2005 to 2015, followed by a notable contraction in both current assets and liabilities starting in 2016. The sharp decline in both items may suggest a significant restructuring, asset divestiture, or change in working capital management during that period. The persistent decrease in the current ratio after 2015 points to potential liquidity challenges, as liabilities are closer to or surpass assets, which may warrant closer attention to short-term financial stability.
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. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|---|
| Oct 31, 2018 | 0.85 | 1.12 | 4.48 | 2.29 | — | 1.89 |
| Oct 31, 2017 | 1.00 | 1.28 | 4.28 | 3.03 | — | 1.88 |
| Oct 31, 2016 | 0.98 | 1.35 | 3.32 | 3.16 | — | 2.58 |
| Oct 31, 2015 | 1.23 | 1.11 | 4.15 | 3.23 | — | 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 | 2.03 |
| Oct 31, 2014 | 1.15 | 1.97 |
| Oct 31, 2013 | 1.11 | 2.20 |
| Oct 31, 2012 | 1.09 | 2.07 |
| Oct 31, 2011 | 1.01 | 2.11 |
| Oct 31, 2010 | 1.10 | 2.01 |
| Oct 31, 2009 | 1.22 | 2.03 |
| Oct 31, 2008 | 0.98 | 1.80 |
| Oct 31, 2007 | 1.21 | 1.78 |
| Oct 31, 2006 | 1.35 | 1.85 |
| Oct 31, 2005 | 1.38 | 2.01 |
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).