Net Profit Margin
since 2005
Calculation
HP Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net earnings (loss)1 | ÷ | Net revenue1 | |
|---|---|---|---|---|---|---|---|
| Oct 31, 2018 | 9.11% | = | 100 | × | 5,327) | ÷ | 58,472) |
| Oct 31, 2017 | 4.85% | = | 100 | × | 2,526) | ÷ | 52,056) |
| Oct 31, 2016 | 5.17% | = | 100 | × | 2,496) | ÷ | 48,238) |
| Oct 31, 2015 | 4.41% | = | 100 | × | 4,554) | ÷ | 103,355) |
| Oct 31, 2014 | 4.50% | = | 100 | × | 5,013) | ÷ | 111,454) |
| Oct 31, 2013 | 4.55% | = | 100 | × | 5,113) | ÷ | 112,298) |
| Oct 31, 2012 | -10.51% | = | 100 | × | (12,650) | ÷ | 120,357) |
| Oct 31, 2011 | 5.56% | = | 100 | × | 7,074) | ÷ | 127,245) |
| Oct 31, 2010 | 6.95% | = | 100 | × | 8,761) | ÷ | 126,033) |
| Oct 31, 2009 | 6.69% | = | 100 | × | 7,660) | ÷ | 114,552) |
| Oct 31, 2008 | 7.04% | = | 100 | × | 8,329) | ÷ | 118,364) |
| Oct 31, 2007 | 6.97% | = | 100 | × | 7,264) | ÷ | 104,286) |
| Oct 31, 2006 | 6.76% | = | 100 | × | 6,198) | ÷ | 91,658) |
| Oct 31, 2005 | 2.77% | = | 100 | × | 2,398) | ÷ | 86,696) |
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 net profit margin exhibits significant volatility over the period from 2005 to 2018, characterized by an initial growth phase, a severe contraction, and a subsequent recovery leading to a period of increased operational efficiency.
- Growth and Peak Performance (2005–2011)
- A steady increase in net profit margin is observed from 2005 to 2008, rising from 2.77% to a peak of 7.04%. This period coincides with consistent growth in net revenue, which expanded from 86,696 million to 118,364 million. Following 2008, the margin remained relatively stable, although a slight downward trend began in 2011, closing the year at 5.56%.
- Significant Profitability Contraction (2012)
- A critical anomaly occurred in 2012, where the net profit margin collapsed to -10.51%. This decline was driven by a substantial net loss of 12,650 million, occurring despite net revenue remaining high at 120,357 million, indicating a severe financial impact that decoupled earnings from revenue generation during that fiscal year.
- Stabilization Phase (2013–2015)
- Profitability returned to positive territory in 2013 with a margin of 4.55%. For the following three years, the net profit margin remained narrow and stagnant, fluctuating minimally between 4.41% and 4.55%. During this interval, net revenue began a gradual decline, falling from 112,298 million in 2013 to 103,355 million in 2015.
- Revenue Realignment and Margin Expansion (2016–2018)
- A sharp reduction in net revenue is evident in 2016, falling to 48,238 million. However, this structural shift coincided with an improvement in profitability. The net profit margin rose from 5.17% in 2016 to a period high of 9.11% by 2018. This suggests a transition toward a more efficient operational model, achieving higher profit margins on a reduced revenue base.
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Comparison to Competitors
HP Inc., net profit margin, 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 | 9.11% | 22.41% | 15.25% | 0.22% | — | 19.88% | 1.37% |
| Oct 31, 2017 | 4.85% | 21.09% | 25.71% | 20.02% | — | -10.23% | 2.69% |
| Oct 31, 2016 | 5.17% | 21.19% | 16.31% | 21.81% | — | 1.03% | 3.25% |
| Oct 31, 2015 | 4.41% | 22.85% | 14.46% | 18.27% | — | -0.41% | 5.12% |
| Oct 31, 2014 | 4.50% | 21.61% | 14.87% | 16.66% | — | — | 3.69% |
| Oct 31, 2013 | 4.55% | 21.67% | — | 20.54% | — | — | 1.83% |
| Oct 31, 2012 | -10.51% | 26.67% | — | 17.46% | — | — | 2.94% |
| Oct 31, 2011 | 5.56% | 23.95% | — | 15.02% | — | — | 4.27% |
| Oct 31, 2010 | 6.95% | 21.48% | — | 19.40% | — | — | 3.73% |
| Oct 31, 2009 | 6.69% | 15.61% | — | 16.98% | — | — | 3.19% |
| Oct 31, 2008 | 7.04% | 14.88% | — | 20.36% | — | — | 4.70% |
| Oct 31, 2007 | 6.97% | 14.56% | — | 21.00% | — | — | 4.60% |
| Oct 31, 2006 | 6.76% | 10.30% | — | 19.59% | — | — | — |
| Oct 31, 2005 | 2.77% | 9.58% | — | 23.15% | — | — | — |
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).
Comparison to Sector (Technology Hardware & Equipment)
HP Inc., net profit margin, long-term trends, comparison to sector (technology hardware & equipment)
| HP Inc. | Technology Hardware & Equipment | |
|---|---|---|
| Oct 31, 2018 | 9.11% | 18.73% |
| Oct 31, 2017 | 4.85% | 20.66% |
| Oct 31, 2016 | 5.17% | 21.06% |
| Oct 31, 2015 | 4.41% | 21.84% |
| Oct 31, 2014 | 4.50% | 20.48% |
| Oct 31, 2013 | 4.55% | 21.32% |
| Oct 31, 2012 | -10.51% | 24.46% |
| Oct 31, 2011 | 5.56% | 21.29% |
| Oct 31, 2010 | 6.95% | 20.58% |
| Oct 31, 2009 | 6.69% | 16.20% |
| Oct 31, 2008 | 7.04% | 17.79% |
| Oct 31, 2007 | 6.97% | 18.28% |
| Oct 31, 2006 | 6.76% | 15.84% |
| Oct 31, 2005 | 2.77% | 18.27% |
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., net profit margin, long-term trends, comparison to industry (information technology)
| HP Inc. | Information Technology | |
|---|---|---|
| Oct 31, 2018 | 9.11% | 18.59% |
| Oct 31, 2017 | 4.85% | 17.77% |
| Oct 31, 2016 | 5.17% | 17.58% |
| Oct 31, 2015 | 4.41% | 18.32% |
| Oct 31, 2014 | 4.50% | 19.33% |
| Oct 31, 2013 | 4.55% | 20.15% |
| Oct 31, 2012 | -10.51% | 20.07% |
| Oct 31, 2011 | 5.56% | 20.71% |
| Oct 31, 2010 | 6.95% | 20.19% |
| Oct 31, 2009 | 6.69% | 14.45% |
| Oct 31, 2008 | 7.04% | 15.07% |
| Oct 31, 2007 | 6.97% | 15.71% |
| Oct 31, 2006 | 6.76% | 16.26% |
| Oct 31, 2005 | 2.77% | 16.64% |
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).