Total Asset Turnover
since 2005
Calculation
HP Inc., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Net revenue1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Oct 31, 2018 | 1.69 | = | 58,472) | ÷ | 34,622) |
| Oct 31, 2017 | 1.58 | = | 52,056) | ÷ | 32,913) |
| Oct 31, 2016 | 1.66 | = | 48,238) | ÷ | 29,010) |
| Oct 31, 2015 | 0.97 | = | 103,355) | ÷ | 106,882) |
| Oct 31, 2014 | 1.08 | = | 111,454) | ÷ | 103,206) |
| Oct 31, 2013 | 1.06 | = | 112,298) | ÷ | 105,676) |
| Oct 31, 2012 | 1.11 | = | 120,357) | ÷ | 108,768) |
| Oct 31, 2011 | 0.98 | = | 127,245) | ÷ | 129,517) |
| Oct 31, 2010 | 1.01 | = | 126,033) | ÷ | 124,503) |
| Oct 31, 2009 | 1.00 | = | 114,552) | ÷ | 114,799) |
| Oct 31, 2008 | 1.04 | = | 118,364) | ÷ | 113,331) |
| Oct 31, 2007 | 1.18 | = | 104,286) | ÷ | 88,699) |
| Oct 31, 2006 | 1.12 | = | 91,658) | ÷ | 81,981) |
| Oct 31, 2005 | 1.12 | = | 86,696) | ÷ | 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 analysis of total asset turnover reveals a distinct shift in operational efficiency and asset utilization between two primary periods from 2005 to 2018. The period is characterized by a long phase of relative stability followed by a sharp structural adjustment that significantly improved the asset turnover ratio.
- Baseline Asset Utilization (2005–2015)
- From 2005 through 2015, total asset turnover remained relatively range-bound, fluctuating between a low of 0.97 and a high of 1.18. During this decade, net revenue generally trended upward until 2011, peaking at 127,245 million US dollars, while total assets grew proportionally. The consistency of the ratio during this time indicates that revenue growth was largely driven by a corresponding increase in the asset base, maintaining a steady relationship where approximately one dollar of revenue was generated for every dollar of assets held.
- Structural Transition and Asset Compression (2016)
- A significant structural change occurred in 2016, marked by a precipitous decline in both net revenue and total assets. Total assets decreased from 106,882 million US dollars in 2015 to 29,010 million US dollars in 2016, representing a reduction of approximately 73%. While net revenue also fell sharply to 48,238 million US dollars, the reduction in the asset base was more pronounced than the decline in revenue. This imbalance resulted in an immediate and sharp increase in the total asset turnover ratio, which jumped from 0.97 in 2015 to 1.66 in 2016.
- Enhanced Efficiency Phase (2016–2018)
- In the final three years of the analyzed period, the company operated with a substantially higher asset turnover ratio, averaging approximately 1.64. Despite a slight dip to 1.58 in 2017, the ratio recovered to 1.69 by 2018. This trend indicates a more lean asset structure capable of generating higher sales volumes per unit of investment. The move from a ~1.0x ratio to a ~1.6x ratio suggests a significant improvement in the efficiency of asset deployment and a shift toward a less asset-intensive business model.
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Comparison to Competitors
HP Inc., total asset turnover, 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 | 1.69 | 0.73 | 0.70 | 0.45 | — | 0.79 | 1.90 |
| Oct 31, 2017 | 1.58 | 0.61 | 0.67 | 0.37 | — | 0.81 | 1.64 |
| Oct 31, 2016 | 1.66 | 0.67 | 0.65 | 0.40 | — | 1.24 | 1.90 |
| Oct 31, 2015 | 0.97 | 0.80 | 0.72 | 0.43 | — | 1.63 | 1.83 |
| Oct 31, 2014 | 1.08 | 0.79 | 0.72 | 0.45 | — | — | 1.84 |
| Oct 31, 2013 | 1.06 | 0.83 | — | 0.48 | — | — | 1.84 |
| Oct 31, 2012 | 1.11 | 0.89 | — | 0.50 | — | — | 1.72 |
| Oct 31, 2011 | 0.98 | 0.93 | — | 0.50 | — | — | 2.03 |
| Oct 31, 2010 | 1.01 | 0.87 | — | 0.49 | — | — | 1.95 |
| Oct 31, 2009 | 1.00 | 0.68 | — | 0.53 | — | — | 1.79 |
| Oct 31, 2008 | 1.04 | 0.82 | — | 0.67 | — | — | 2.04 |
| Oct 31, 2007 | 1.18 | 0.95 | — | 0.65 | — | — | 2.04 |
| Oct 31, 2006 | 1.12 | 1.12 | — | 0.66 | — | — | — |
| Oct 31, 2005 | 1.12 | 1.21 | — | 0.73 | — | — | — |
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., total asset turnover, long-term trends, comparison to sector (technology hardware & equipment)
| HP Inc. | Technology Hardware & Equipment | |
|---|---|---|
| Oct 31, 2018 | 1.69 | 0.67 |
| Oct 31, 2017 | 1.58 | 0.55 |
| Oct 31, 2016 | 1.66 | 0.60 |
| Oct 31, 2015 | 0.97 | 0.70 |
| Oct 31, 2014 | 1.08 | 0.69 |
| Oct 31, 2013 | 1.06 | 0.71 |
| Oct 31, 2012 | 1.11 | 0.76 |
| Oct 31, 2011 | 0.98 | 0.75 |
| Oct 31, 2010 | 1.01 | 0.68 |
| Oct 31, 2009 | 1.00 | 0.60 |
| Oct 31, 2008 | 1.04 | 0.74 |
| Oct 31, 2007 | 1.18 | 0.75 |
| Oct 31, 2006 | 1.12 | 0.79 |
| Oct 31, 2005 | 1.12 | 0.85 |
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., total asset turnover, long-term trends, comparison to industry (information technology)
| HP Inc. | Information Technology | |
|---|---|---|
| Oct 31, 2018 | 1.69 | 0.59 |
| Oct 31, 2017 | 1.58 | 0.51 |
| Oct 31, 2016 | 1.66 | 0.55 |
| Oct 31, 2015 | 0.97 | 0.63 |
| Oct 31, 2014 | 1.08 | 0.64 |
| Oct 31, 2013 | 1.06 | 0.66 |
| Oct 31, 2012 | 1.11 | 0.70 |
| Oct 31, 2011 | 0.98 | 0.73 |
| Oct 31, 2010 | 1.01 | 0.72 |
| Oct 31, 2009 | 1.00 | 0.69 |
| Oct 31, 2008 | 1.04 | 0.79 |
| Oct 31, 2007 | 1.18 | 0.76 |
| Oct 31, 2006 | 1.12 | 0.75 |
| Oct 31, 2005 | 1.12 | 0.76 |
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).