Return on Equity (ROE)
since 2005
Calculation
HP Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net earnings (loss)1 | ÷ | Total HP stockholders’ equity (deficit)1 | |
|---|---|---|---|---|---|---|---|
| Oct 31, 2018 | — | = | 100 | × | 5,327) | ÷ | (639) |
| Oct 31, 2017 | — | = | 100 | × | 2,526) | ÷ | (3,408) |
| Oct 31, 2016 | — | = | 100 | × | 2,496) | ÷ | (3,889) |
| Oct 31, 2015 | 16.40% | = | 100 | × | 4,554) | ÷ | 27,768) |
| Oct 31, 2014 | 18.75% | = | 100 | × | 5,013) | ÷ | 26,731) |
| Oct 31, 2013 | 18.75% | = | 100 | × | 5,113) | ÷ | 27,269) |
| Oct 31, 2012 | -56.38% | = | 100 | × | (12,650) | ÷ | 22,436) |
| Oct 31, 2011 | 18.31% | = | 100 | × | 7,074) | ÷ | 38,625) |
| Oct 31, 2010 | 21.66% | = | 100 | × | 8,761) | ÷ | 40,449) |
| Oct 31, 2009 | 18.91% | = | 100 | × | 7,660) | ÷ | 40,517) |
| Oct 31, 2008 | 21.39% | = | 100 | × | 8,329) | ÷ | 38,942) |
| Oct 31, 2007 | 18.85% | = | 100 | × | 7,264) | ÷ | 38,526) |
| Oct 31, 2006 | 16.25% | = | 100 | × | 6,198) | ÷ | 38,144) |
| Oct 31, 2005 | 6.45% | = | 100 | × | 2,398) | ÷ | 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 annual financial data reveals several notable trends and fluctuations over the examined period. Net earnings experienced significant volatility, reaching a peak in 2008 at 8,329 million USD, followed by a notable decline in 2012 when the company reported a substantial loss of 12,650 million USD. After this downturn, net earnings recovered steadily, reaching 5,327 million USD by 2018, indicating a return to profitability but not surpassing previous peak levels.
Total stockholders' equity generally increased from 2005 through 2011, peaking at 40,449 million USD in 2010 and slightly declining thereafter. However, a sharp decrease is evident starting in 2016, with equity turning negative, reaching a deficit of 3,889 million USD, and remaining negative through 2018, which might indicate significant financial restructuring, losses, or write-downs impacting the company's net asset value.
Return on equity (ROE) data mirrors the volatility observed in net earnings and equity. Initially, ROE improved from 6.45% in 2005, peaking at 21.66% in 2010. The figure then suffers a dramatic reversal in 2012, plunging to -56.38%, reflecting the substantial losses and equity deficit recorded that year. ROE rebounds thereafter, stabilizing around 16-18% through 2014, though data beyond that is not available.
Overall, the financial trends indicate a period of growth and strong profitability up to 2011, followed by severe financial challenges around 2012 marked by large losses and equity erosion. The company subsequently returned to profitability, yet the negative equity position in later years signals ongoing financial stress or strategic transformations impacting shareholder value.
Comparison to Competitors
HP Inc., ROE, 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 | — | 55.56% | 15.31% | 0.25% | — | 5.47% |
| Oct 31, 2017 | — | 36.07% | 25.46% | 14.53% | — | 8.64% |
| Oct 31, 2016 | — | 35.62% | 16.63% | 16.89% | — | 9.99% |
| Oct 31, 2015 | 16.40% | 44.74% | 15.37% | 15.04% | — | 16.46% |
| Oct 31, 2014 | 18.75% | 35.42% | 15.63% | 13.86% | — | 11.55% |
| Oct 31, 2013 | 18.75% | 29.98% | — | 16.89% | — | 5.70% |
| Oct 31, 2012 | -56.38% | 35.30% | — | 15.68% | — | 8.82% |
| Oct 31, 2011 | 18.31% | 33.83% | — | 13.74% | — | 14.00% |
| Oct 31, 2010 | 21.66% | 29.32% | — | 17.55% | — | 11.98% |
| Oct 31, 2009 | 18.91% | 20.49% | — | 15.87% | — | 9.02% |
| Oct 31, 2008 | 21.39% | 22.99% | — | 23.44% | — | 16.74% |
| Oct 31, 2007 | 18.85% | 24.06% | — | 23.29% | — | 16.69% |
| Oct 31, 2006 | 16.25% | 19.92% | — | 23.34% | — | — |
| Oct 31, 2005 | 6.45% | 17.88% | — | 24.77% | — | — |
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).
Comparison to Sector (Technology Hardware & Equipment)
HP Inc., ROE, long-term trends, comparison to sector (technology hardware & equipment)
| HP Inc. | Technology Hardware & Equipment | |
|---|---|---|
| Oct 31, 2018 | — | 39.14% |
| Oct 31, 2017 | — | 28.85% |
| Oct 31, 2016 | — | 29.27% |
| Oct 31, 2015 | 16.40% | 34.69% |
| Oct 31, 2014 | 18.75% | 28.07% |
| Oct 31, 2013 | 18.75% | 25.70% |
| Oct 31, 2012 | -56.38% | 29.32% |
| Oct 31, 2011 | 18.31% | 26.14% |
| Oct 31, 2010 | 21.66% | 23.63% |
| Oct 31, 2009 | 18.91% | 17.78% |
| Oct 31, 2008 | 21.39% | 23.25% |
| Oct 31, 2007 | 18.85% | 23.52% |
| Oct 31, 2006 | 16.25% | 22.33% |
| Oct 31, 2005 | 6.45% | 23.09% |
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., ROE, long-term trends, comparison to industry (information technology)
| HP Inc. | Information Technology | |
|---|---|---|
| Oct 31, 2018 | — | 30.39% |
| Oct 31, 2017 | — | 23.40% |
| Oct 31, 2016 | — | 23.36% |
| Oct 31, 2015 | 16.40% | 26.17% |
| Oct 31, 2014 | 18.75% | 25.60% |
| Oct 31, 2013 | 18.75% | 24.89% |
| Oct 31, 2012 | -56.38% | 26.24% |
| Oct 31, 2011 | 18.31% | 29.20% |
| Oct 31, 2010 | 21.66% | 27.87% |
| Oct 31, 2009 | 18.91% | 20.26% |
| Oct 31, 2008 | 21.39% | 25.64% |
| Oct 31, 2007 | 18.85% | 23.99% |
| Oct 31, 2006 | 16.25% | 22.71% |
| Oct 31, 2005 | 6.45% | 22.09% |
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).