Debt to Equity
since 2005
Calculation
HP Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Total HP stockholders’ equity (deficit)1 | |
|---|---|---|---|---|---|
| Oct 31, 2018 | — | = | 5,987) | ÷ | (639) |
| Oct 31, 2017 | — | = | 7,819) | ÷ | (3,408) |
| Oct 31, 2016 | — | = | 6,836) | ÷ | (3,889) |
| Oct 31, 2015 | 0.89 | = | 24,665) | ÷ | 27,768) |
| Oct 31, 2014 | 0.73 | = | 19,525) | ÷ | 26,731) |
| Oct 31, 2013 | 0.83 | = | 22,587) | ÷ | 27,269) |
| Oct 31, 2012 | 1.27 | = | 28,436) | ÷ | 22,436) |
| Oct 31, 2011 | 0.79 | = | 30,634) | ÷ | 38,625) |
| Oct 31, 2010 | 0.55 | = | 22,304) | ÷ | 40,449) |
| Oct 31, 2009 | 0.39 | = | 15,830) | ÷ | 40,517) |
| Oct 31, 2008 | 0.46 | = | 17,852) | ÷ | 38,942) |
| Oct 31, 2007 | 0.21 | = | 8,183) | ÷ | 38,526) |
| Oct 31, 2006 | 0.14 | = | 5,195) | ÷ | 38,144) |
| Oct 31, 2005 | 0.14 | = | 5,223) | ÷ | 37,176) |
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 financial trajectory from 2005 to 2018 reveals a significant evolution in capital structure, transitioning from a conservative, low-leverage position to a period of aggressive debt accumulation, and ultimately concluding with a stockholders' equity deficit.
- Debt Accumulation and Leverage Growth (2005–2011)
- A consistent upward trend in total debt is observed, rising from 5,223 million US dollars in 2005 to a peak of 30,634 million US dollars in 2011. During this period, stockholders' equity remained relatively stable, fluctuating between 37,176 million and 40,517 million US dollars. Consequently, the debt-to-equity ratio increased steadily from 0.14 to 0.79, signaling a strategic shift toward higher financial leverage.
- Peak Leverage and Equity Volatility (2012–2015)
- The debt-to-equity ratio reached its maximum value of 1.27 in 2012, coinciding with a sharp contraction in stockholders' equity to 22,436 million US dollars. While total debt began a gradual decline from its 2011 peak, ending at 24,665 million US dollars in 2015, the leverage ratio remained volatile, fluctuating between 0.73 and 1.27. This period indicates a heightened reliance on debt relative to equity.
- Capital Restructuring and Equity Deficit (2016–2018)
- A dramatic shift in the balance sheet occurred starting in 2016, characterized by a substantial reduction in total debt to 6,836 million US dollars and a transition to a negative stockholders' equity position. The equity deficit peaked at -3,889 million US dollars in 2016 before improving to -639 million US dollars by 2018. Due to the negative equity balance, the debt-to-equity ratio became inapplicable during these final three years, reflecting a fundamental change in the company's solvency profile.
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Comparison to Competitors
HP Inc., debt to equity, 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 | — | 1.07 | 0.02 | 0.59 | — | 0.36 | 0.14 |
| Oct 31, 2017 | — | 0.86 | 0.02 | 0.51 | — | 0.51 | 0.21 |
| Oct 31, 2016 | — | 0.68 | 0.04 | 0.45 | — | 0.00 | 0.13 |
| Oct 31, 2015 | 0.89 | 0.54 | 0.05 | 0.42 | — | 0.00 | 0.15 |
| Oct 31, 2014 | 0.73 | 0.32 | 0.08 | 0.37 | — | — | 0.10 |
| Oct 31, 2013 | 0.83 | 0.14 | — | 0.27 | — | — | 0.09 |
| Oct 31, 2012 | 1.27 | 0.00 | — | 0.32 | — | — | 0.10 |
| Oct 31, 2011 | 0.79 | 0.00 | — | 0.36 | — | — | 0.10 |
| Oct 31, 2010 | 0.55 | 0.00 | — | 0.35 | — | — | 0.08 |
| Oct 31, 2009 | 0.39 | 0.00 | — | 0.27 | — | — | 0.06 |
| Oct 31, 2008 | 0.46 | 0.00 | — | 0.20 | — | — | 0.07 |
| Oct 31, 2007 | 0.21 | 0.00 | — | 0.20 | — | — | 0.10 |
| Oct 31, 2006 | 0.14 | 0.00 | — | 0.26 | — | — | — |
| Oct 31, 2005 | 0.14 | 0.00 | — | 0.00 | — | — | — |
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., debt to equity, long-term trends, comparison to sector (technology hardware & equipment)
| HP Inc. | Technology Hardware & Equipment | |
|---|---|---|
| Oct 31, 2018 | — | 0.91 |
| Oct 31, 2017 | — | 0.74 |
| Oct 31, 2016 | — | 0.60 |
| Oct 31, 2015 | 0.89 | 0.50 |
| Oct 31, 2014 | 0.73 | 0.33 |
| Oct 31, 2013 | 0.83 | 0.18 |
| Oct 31, 2012 | 1.27 | 0.10 |
| Oct 31, 2011 | 0.79 | 0.14 |
| Oct 31, 2010 | 0.55 | 0.17 |
| Oct 31, 2009 | 0.39 | 0.15 |
| Oct 31, 2008 | 0.46 | 0.12 |
| Oct 31, 2007 | 0.21 | 0.14 |
| Oct 31, 2006 | 0.14 | 0.19 |
| Oct 31, 2005 | 0.14 | 0.00 |
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., debt to equity, long-term trends, comparison to industry (information technology)
| HP Inc. | Information Technology | |
|---|---|---|
| Oct 31, 2018 | — | 0.82 |
| Oct 31, 2017 | — | 0.80 |
| Oct 31, 2016 | — | 0.65 |
| Oct 31, 2015 | 0.89 | 0.56 |
| Oct 31, 2014 | 0.73 | 0.38 |
| Oct 31, 2013 | 0.83 | 0.28 |
| Oct 31, 2012 | 1.27 | 0.24 |
| Oct 31, 2011 | 0.79 | 0.27 |
| Oct 31, 2010 | 0.55 | 0.24 |
| Oct 31, 2009 | 0.39 | 0.25 |
| Oct 31, 2008 | 0.46 | 0.28 |
| Oct 31, 2007 | 0.21 | 0.26 |
| Oct 31, 2006 | 0.14 | 0.19 |
| Oct 31, 2005 | 0.14 | 0.15 |
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).