Adjusted Financial Ratios (Summary)
Adjusted Total Asset Turnover
Adjusted Current Ratio
Adjusted Debt to Equity
Adjusted Debt to Capital
Adjusted Financial Leverage
Adjusted Net Profit Margin
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

HP Inc., adjusted financial ratios

	Oct 31, 2018	Oct 31, 2017	Oct 31, 2016	Oct 31, 2015	Oct 31, 2014	Oct 31, 2013
Activity Ratio
Total Asset Turnover
Reported	1.69	1.58	1.66	0.97	1.08	1.06
Adjusted	1.75	1.55	1.62	0.98	1.08	1.08
Liquidity Ratio
Current Ratio
Reported	0.85	1.00	0.98	1.23	1.15	1.11
Adjusted	0.92	1.09	1.09	1.46	1.36	1.29
Solvency Ratios
Debt to Equity
Reported	—	—	—	0.89	0.73	0.83
Adjusted	31.10	12.65	—	0.70	0.58	0.64
Debt to Capital
Reported	1.12	1.77	2.32	0.47	0.42	0.45
Adjusted	0.97	0.93	1.01	0.41	0.37	0.39
Financial Leverage
Reported	—	—	—	3.85	3.86	3.88
Adjusted	144.12	48.15	—	2.74	2.67	2.63
Profitability Ratios
Net Profit Margin
Reported	9.11%	4.85%	5.17%	4.41%	4.50%	4.55%
Adjusted	4.11%	5.55%	5.38%	3.21%	2.15%	5.21%
Return on Equity (ROE)
Reported	—	—	—	16.40%	18.75%	18.75%
Adjusted	1,033.91%	413.71%	—	8.59%	6.22%	14.81%
Return on Assets (ROA)
Reported	15.39%	7.67%	8.60%	4.26%	4.86%	4.84%
Adjusted	7.17%	8.59%	8.71%	3.13%	2.33%	5.63%

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).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	HP Inc. adjusted total asset turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	HP Inc. adjusted current ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
Adjusted debt-to-capital ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity.	HP Inc. adjusted debt-to-capital ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	HP Inc. adjusted net profit margin ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	HP Inc. adjusted ROA deteriorated from 2016 to 2017 and from 2017 to 2018.

HP Inc., Financial Ratios: Reported vs. Adjusted

Download chart

	Oct 31, 2018	Oct 31, 2017	Oct 31, 2016	Oct 31, 2015	Oct 31, 2014	Oct 31, 2013
Reported
Selected Financial Data (US$ in millions)
Net revenue	58,472)	52,056)	48,238)	103,355)	111,454)	112,298)
Total assets	34,622)	32,913)	29,010)	106,882)	103,206)	105,676)
Activity Ratio
Total asset turnover¹	1.69	1.58	1.66	0.97	1.08	1.06
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net revenue²	58,639)	52,205)	48,159)	103,853)	111,144)	111,817)
Adjusted total assets³	33,580)	33,708)	29,764)	106,419)	102,625)	103,375)
Activity Ratio
Adjusted total asset turnover⁴	1.75	1.55	1.62	0.98	1.08	1.08

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).

¹ 2018 Calculation
Total asset turnover = Net revenue ÷ Total assets
= 58,472 ÷ 34,622 = 1.69

² Adjusted net revenue. See details »

³ Adjusted total assets. See details »

⁴ 2018 Calculation
Adjusted total asset turnover = Adjusted net revenue ÷ Adjusted total assets
= 58,639 ÷ 33,580 = 1.75

Download chart

Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	HP Inc. adjusted total asset turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

	Oct 31, 2018	Oct 31, 2017	Oct 31, 2016	Oct 31, 2015	Oct 31, 2014	Oct 31, 2013
Reported
Selected Financial Data (US$ in millions)
Current assets	21,387)	22,318)	18,468)	51,787)	50,145)	50,364)
Current liabilities	25,131)	22,412)	18,808)	42,191)	43,735)	45,521)
Liquidity Ratio
Current ratio¹	0.85	1.00	0.98	1.23	1.15	1.11
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets²	21,516)	22,419)	18,575)	49,734)	47,623)	46,803)
Adjusted current liabilities³	23,305)	20,633)	17,103)	33,988)	35,085)	36,378)
Liquidity Ratio
Adjusted current ratio⁴	0.92	1.09	1.09	1.46	1.36	1.29

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).

¹ 2018 Calculation
Current ratio = Current assets ÷ Current liabilities
= 21,387 ÷ 25,131 = 0.85

² Adjusted current assets. See details »

³ Adjusted current liabilities. See details »

⁴ 2018 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 21,516 ÷ 23,305 = 0.92

Download chart

Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	HP Inc. adjusted current ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

	Oct 31, 2018	Oct 31, 2017	Oct 31, 2016	Oct 31, 2015	Oct 31, 2014	Oct 31, 2013
Reported
Selected Financial Data (US$ in millions)
Total debt	5,987)	7,819)	6,836)	24,665)	19,525)	22,587)
Total HP stockholders’ equity (deficit)	(639)	(3,408)	(3,889)	27,768)	26,731)	27,269)
Solvency Ratio
Debt to equity¹	—	—	—	0.89	0.73	0.83
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt²	7,247)	8,855)	7,737)	27,126)	22,206)	25,193)
Adjusted total stockholders’ equity (deficit)³	233)	700)	(98)	38,775)	38,417)	39,324)
Solvency Ratio
Adjusted debt to equity⁴	31.10	12.65	—	0.70	0.58	0.64

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).

¹ 2018 Calculation
Debt to equity = Total debt ÷ Total HP stockholders’ equity (deficit)
= 5,987 ÷ -639 = —

² Adjusted total debt. See details »

³ Adjusted total stockholders’ equity (deficit). See details »

⁴ 2018 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total stockholders’ equity (deficit)
= 7,247 ÷ 233 = 31.10

Download chart

	Oct 31, 2018	Oct 31, 2017	Oct 31, 2016	Oct 31, 2015	Oct 31, 2014	Oct 31, 2013
Reported
Selected Financial Data (US$ in millions)
Total debt	5,987)	7,819)	6,836)	24,665)	19,525)	22,587)
Total capital	5,348)	4,411)	2,947)	52,433)	46,256)	49,856)
Solvency Ratio
Debt to capital¹	1.12	1.77	2.32	0.47	0.42	0.45
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt²	7,247)	8,855)	7,737)	27,126)	22,206)	25,193)
Adjusted total capital³	7,480)	9,555)	7,639)	65,901)	60,623)	64,517)
Solvency Ratio
Adjusted debt to capital⁴	0.97	0.93	1.01	0.41	0.37	0.39

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).

¹ 2018 Calculation
Debt to capital = Total debt ÷ Total capital
= 5,987 ÷ 5,348 = 1.12

² Adjusted total debt. See details »

³ Adjusted total capital. See details »

⁴ 2018 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 7,247 ÷ 7,480 = 0.97

Download chart

Solvency ratio	Description	The company
Adjusted debt-to-capital ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity.	HP Inc. adjusted debt-to-capital ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.

	Oct 31, 2018	Oct 31, 2017	Oct 31, 2016	Oct 31, 2015	Oct 31, 2014	Oct 31, 2013
Reported
Selected Financial Data (US$ in millions)
Total assets	34,622)	32,913)	29,010)	106,882)	103,206)	105,676)
Total HP stockholders’ equity (deficit)	(639)	(3,408)	(3,889)	27,768)	26,731)	27,269)
Solvency Ratio
Financial leverage¹	—	—	—	3.85	3.86	3.88
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets²	33,580)	33,708)	29,764)	106,419)	102,625)	103,375)
Adjusted total stockholders’ equity (deficit)³	233)	700)	(98)	38,775)	38,417)	39,324)
Solvency Ratio
Adjusted financial leverage⁴	144.12	48.15	—	2.74	2.67	2.63

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).

¹ 2018 Calculation
Financial leverage = Total assets ÷ Total HP stockholders’ equity (deficit)
= 34,622 ÷ -639 = —

² Adjusted total assets. See details »

³ Adjusted total stockholders’ equity (deficit). See details »

⁴ 2018 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total stockholders’ equity (deficit)
= 33,580 ÷ 233 = 144.12

Download chart

	Oct 31, 2018	Oct 31, 2017	Oct 31, 2016	Oct 31, 2015	Oct 31, 2014	Oct 31, 2013
Reported
Selected Financial Data (US$ in millions)
Net earnings	5,327)	2,526)	2,496)	4,554)	5,013)	5,113)
Net revenue	58,472)	52,056)	48,238)	103,355)	111,454)	112,298)
Profitability Ratio
Net profit margin¹	9.11%	4.85%	5.17%	4.41%	4.50%	4.55%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings²	2,409)	2,896)	2,591)	3,330)	2,389)	5,822)
Adjusted net revenue³	58,639)	52,205)	48,159)	103,853)	111,144)	111,817)
Profitability Ratio
Adjusted net profit margin⁴	4.11%	5.55%	5.38%	3.21%	2.15%	5.21%

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).

¹ 2018 Calculation
Net profit margin = 100 × Net earnings ÷ Net revenue
= 100 × 5,327 ÷ 58,472 = 9.11%

² Adjusted net earnings. See details »

³ Adjusted net revenue. See details »

⁴ 2018 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings ÷ Adjusted net revenue
= 100 × 2,409 ÷ 58,639 = 4.11%

Download chart

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	HP Inc. adjusted net profit margin ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

	Oct 31, 2018	Oct 31, 2017	Oct 31, 2016	Oct 31, 2015	Oct 31, 2014	Oct 31, 2013
Reported
Selected Financial Data (US$ in millions)
Net earnings	5,327)	2,526)	2,496)	4,554)	5,013)	5,113)
Total HP stockholders’ equity (deficit)	(639)	(3,408)	(3,889)	27,768)	26,731)	27,269)
Profitability Ratio
ROE¹	—	—	—	16.40%	18.75%	18.75%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings²	2,409)	2,896)	2,591)	3,330)	2,389)	5,822)
Adjusted total stockholders’ equity (deficit)³	233)	700)	(98)	38,775)	38,417)	39,324)
Profitability Ratio
Adjusted ROE⁴	1,033.91%	413.71%	—	8.59%	6.22%	14.81%

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).

¹ 2018 Calculation
ROE = 100 × Net earnings ÷ Total HP stockholders’ equity (deficit)
= 100 × 5,327 ÷ -639 = —

² Adjusted net earnings. See details »

³ Adjusted total stockholders’ equity (deficit). See details »

⁴ 2018 Calculation
Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted total stockholders’ equity (deficit)
= 100 × 2,409 ÷ 233 = 1,033.91%

Download chart

	Oct 31, 2018	Oct 31, 2017	Oct 31, 2016	Oct 31, 2015	Oct 31, 2014	Oct 31, 2013
Reported
Selected Financial Data (US$ in millions)
Net earnings	5,327)	2,526)	2,496)	4,554)	5,013)	5,113)
Total assets	34,622)	32,913)	29,010)	106,882)	103,206)	105,676)
Profitability Ratio
ROA¹	15.39%	7.67%	8.60%	4.26%	4.86%	4.84%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings²	2,409)	2,896)	2,591)	3,330)	2,389)	5,822)
Adjusted total assets³	33,580)	33,708)	29,764)	106,419)	102,625)	103,375)
Profitability Ratio
Adjusted ROA⁴	7.17%	8.59%	8.71%	3.13%	2.33%	5.63%

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).

¹ 2018 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 5,327 ÷ 34,622 = 15.39%

² Adjusted net earnings. See details »

³ Adjusted total assets. See details »

⁴ 2018 Calculation
Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 2,409 ÷ 33,580 = 7.17%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	HP Inc. adjusted ROA deteriorated from 2016 to 2017 and from 2017 to 2018.

HP Inc. (NYSE:HPQ)

Adjusted Financial Ratios

Adjusted Financial Ratios (Summary)

HP Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Current Ratio

Adjusted Debt to Equity

Adjusted Debt to Capital

Adjusted Financial Leverage

Adjusted Net Profit Margin

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)