Return on Assets (ROA)
since 2005
Calculation
HP Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net earnings (loss)1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Oct 31, 2018 | 15.39% | = | 100 | × | 5,327) | ÷ | 34,622) |
| Oct 31, 2017 | 7.67% | = | 100 | × | 2,526) | ÷ | 32,913) |
| Oct 31, 2016 | 8.60% | = | 100 | × | 2,496) | ÷ | 29,010) |
| Oct 31, 2015 | 4.26% | = | 100 | × | 4,554) | ÷ | 106,882) |
| Oct 31, 2014 | 4.86% | = | 100 | × | 5,013) | ÷ | 103,206) |
| Oct 31, 2013 | 4.84% | = | 100 | × | 5,113) | ÷ | 105,676) |
| Oct 31, 2012 | -11.63% | = | 100 | × | (12,650) | ÷ | 108,768) |
| Oct 31, 2011 | 5.46% | = | 100 | × | 7,074) | ÷ | 129,517) |
| Oct 31, 2010 | 7.04% | = | 100 | × | 8,761) | ÷ | 124,503) |
| Oct 31, 2009 | 6.67% | = | 100 | × | 7,660) | ÷ | 114,799) |
| Oct 31, 2008 | 7.35% | = | 100 | × | 8,329) | ÷ | 113,331) |
| Oct 31, 2007 | 8.19% | = | 100 | × | 7,264) | ÷ | 88,699) |
| Oct 31, 2006 | 7.56% | = | 100 | × | 6,198) | ÷ | 81,981) |
| Oct 31, 2005 | 3.10% | = | 100 | × | 2,398) | ÷ | 77,317) |
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 data reveals fluctuating financial performance over the observed period, with notable variations in net earnings, total assets, and return on assets (ROA).
- Net Earnings (US$ in millions)
- Net earnings demonstrated an overall upward trend from 2005 to 2010, rising from 2,398 million to a peak of 8,761 million in 2010. This was followed by a decline in 2011 to 7,074 million and a significant loss in 2012, registering a negative value of -12,650 million. From 2013 onwards, net earnings recovered but remained volatile, fluctuating between approximately 2,496 million and 5,327 million through 2018.
- Total Assets (US$ in millions)
- Total assets generally increased from 77,317 million in 2005 to a high of 129,517 million in 2011. After 2011, a steep decline is observed in 2012 to 108,768 million, continuing down to 29,010 million in 2016. Post-2016, total assets show a gradual recovery, rising moderately to 34,622 million by 2018.
- Return on Assets (ROA %)
- ROA closely follows the trend in net earnings, increasing from 3.1% in 2005 to a high of 8.19% in 2007, then remaining relatively stable around 6-7% until 2010. A sharp decline to -11.63% in 2012 coincides with the net earnings loss and asset reduction. Thereafter, ROA improves significantly, achieving the highest value of 15.39% in 2018, indicating enhanced asset efficiency in generating profits.
In summary, the company experienced growth in profitability and asset base through 2010, followed by a period of sharp contraction and negative earnings in 2012. Subsequent years reflect a recovery phase with more efficient use of assets, as evidenced by improving ROA despite lower asset levels compared to the peak in 2011.
Comparison to Competitors
HP Inc., ROA, 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 | 15.39% | 16.28% | 10.65% | 0.10% | — | 2.61% |
| Oct 31, 2017 | 7.67% | 12.88% | 17.20% | 7.40% | — | 4.41% |
| Oct 31, 2016 | 8.60% | 14.20% | 10.65% | 8.83% | — | 6.18% |
| Oct 31, 2015 | 4.26% | 18.38% | 10.44% | 7.91% | — | 9.35% |
| Oct 31, 2014 | 4.86% | 17.04% | 10.71% | 7.47% | — | 6.80% |
| Oct 31, 2013 | 4.84% | 17.89% | — | 9.87% | — | 3.37% |
| Oct 31, 2012 | -11.63% | 23.70% | — | 8.76% | — | 5.07% |
| Oct 31, 2011 | 5.46% | 22.28% | — | 7.45% | — | 8.66% |
| Oct 31, 2010 | 7.04% | 18.64% | — | 9.57% | — | 7.26% |
| Oct 31, 2009 | 6.67% | 10.59% | — | 9.00% | — | 5.69% |
| Oct 31, 2008 | 7.35% | 12.22% | — | 13.71% | — | 9.61% |
| Oct 31, 2007 | 8.19% | 13.79% | — | 13.75% | — | 9.41% |
| Oct 31, 2006 | 7.56% | 11.56% | — | 12.88% | — | — |
| Oct 31, 2005 | 3.10% | 11.56% | — | 16.94% | — | — |
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., ROA, long-term trends, comparison to sector (technology hardware & equipment)
| HP Inc. | Technology Hardware & Equipment | |
|---|---|---|
| Oct 31, 2018 | 15.39% | 12.52% |
| Oct 31, 2017 | 7.67% | 11.48% |
| Oct 31, 2016 | 8.60% | 12.70% |
| Oct 31, 2015 | 4.26% | 15.41% |
| Oct 31, 2014 | 4.86% | 14.03% |
| Oct 31, 2013 | 4.84% | 15.23% |
| Oct 31, 2012 | -11.63% | 18.55% |
| Oct 31, 2011 | 5.46% | 15.91% |
| Oct 31, 2010 | 7.04% | 13.92% |
| Oct 31, 2009 | 6.67% | 9.70% |
| Oct 31, 2008 | 7.35% | 13.10% |
| Oct 31, 2007 | 8.19% | 13.75% |
| Oct 31, 2006 | 7.56% | 12.51% |
| Oct 31, 2005 | 3.10% | 15.57% |
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., ROA, long-term trends, comparison to industry (information technology)
| HP Inc. | Information Technology | |
|---|---|---|
| Oct 31, 2018 | 15.39% | 10.94% |
| Oct 31, 2017 | 7.67% | 9.05% |
| Oct 31, 2016 | 8.60% | 9.79% |
| Oct 31, 2015 | 4.26% | 11.53% |
| Oct 31, 2014 | 4.86% | 12.37% |
| Oct 31, 2013 | 4.84% | 13.26% |
| Oct 31, 2012 | -11.63% | 14.08% |
| Oct 31, 2011 | 5.46% | 15.12% |
| Oct 31, 2010 | 7.04% | 14.52% |
| Oct 31, 2009 | 6.67% | 10.09% |
| Oct 31, 2008 | 7.35% | 12.00% |
| Oct 31, 2007 | 8.19% | 12.05% |
| Oct 31, 2006 | 7.56% | 12.22% |
| Oct 31, 2005 | 3.10% | 12.77% |
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).