Stock Analysis on Net
Stock Analysis on Net

HP Inc. (NYSE:HPQ)

This company has been moved to the archive! The financial data has not been updated since August 29, 2019.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

HP Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Jul 31, 2019 — = 13.01% × —
Apr 30, 2019 — = 12.26% × —
Jan 31, 2019 — = 12.90% × —
Oct 31, 2018 — = 15.39% × —
Jul 31, 2018 — = 13.24% × —
Apr 30, 2018 — = 13.56% × —
Jan 31, 2018 — = 10.93% × —
Oct 31, 2017 — = 7.67% × —
Jul 31, 2017 — = 7.38% × —
Apr 30, 2017 — = 8.52% × —
Jan 31, 2017 — = 8.92% × —
Oct 31, 2016 — = 8.60% × —
Jul 31, 2016 — = 12.22% × —
Apr 30, 2016 — = 13.31% × —
Jan 31, 2016 — = 14.81% × —
Oct 31, 2015 16.40% = 4.26% × 3.85
Jul 31, 2015 16.87% = 4.26% × 3.96
Apr 30, 2015 17.53% = 4.63% × 3.79
Jan 31, 2015 18.69% = 4.91% × 3.81
Oct 31, 2014 18.75% = 4.86% × 3.86
Jul 31, 2014 17.88% = 4.94% × 3.62
Apr 30, 2014 19.52% = 5.29% × 3.69
Jan 31, 2014 19.12% = 5.05% × 3.78
Oct 31, 2013 18.75% = 4.84% × 3.88
Jul 31, 2013 — = — × 4.30
Apr 30, 2013 — = — × 4.52
Jan 31, 2013 — = — × 4.66

Based on: 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-K (reporting date: 2018-10-31), 10-Q (reporting date: 2018-07-31), 10-Q (reporting date: 2018-04-30), 10-Q (reporting date: 2018-01-31), 10-K (reporting date: 2017-10-31), 10-Q (reporting date: 2017-07-31), 10-Q (reporting date: 2017-04-30), 10-Q (reporting date: 2017-01-31), 10-K (reporting date: 2016-10-31), 10-Q (reporting date: 2016-07-31), 10-Q (reporting date: 2016-04-30), 10-Q (reporting date: 2016-01-31), 10-K (reporting date: 2015-10-31), 10-Q (reporting date: 2015-07-31), 10-Q (reporting date: 2015-04-30), 10-Q (reporting date: 2015-01-31), 10-K (reporting date: 2014-10-31), 10-Q (reporting date: 2014-07-31), 10-Q (reporting date: 2014-04-30), 10-Q (reporting date: 2014-01-31), 10-K (reporting date: 2013-10-31), 10-Q (reporting date: 2013-07-31), 10-Q (reporting date: 2013-04-30), 10-Q (reporting date: 2013-01-31).

Three-Component Disaggregation of ROE

HP Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jul 31, 2019 — = 7.18% × 1.81 × —
Apr 30, 2019 — = 6.67% × 1.84 × —
Jan 31, 2019 — = 7.15% × 1.81 × —
Oct 31, 2018 — = 9.11% × 1.69 × —
Jul 31, 2018 — = 7.95% × 1.67 × —
Apr 30, 2018 — = 7.84% × 1.73 × —
Jan 31, 2018 — = 7.15% × 1.53 × —
Oct 31, 2017 — = 4.85% × 1.58 × —
Jul 31, 2017 — = 4.66% × 1.59 × —
Apr 30, 2017 — = 4.94% × 1.72 × —
Jan 31, 2017 — = 5.17% × 1.73 × —
Oct 31, 2016 — = 5.17% × 1.66 × —
Jul 31, 2016 — = 5.42% × 2.26 × —
Apr 30, 2016 — = 4.54% × 2.93 × —
Jan 31, 2016 — = 4.26% × 3.48 × —
Oct 31, 2015 16.40% = 4.41% × 0.97 × 3.85
Jul 31, 2015 16.87% = 4.30% × 0.99 × 3.96
Apr 30, 2015 17.53% = 4.33% × 1.07 × 3.79
Jan 31, 2015 18.69% = 4.50% × 1.09 × 3.81
Oct 31, 2014 18.75% = 4.50% × 1.08 × 3.86
Jul 31, 2014 17.88% = 4.54% × 1.09 × 3.62
Apr 30, 2014 19.52% = 4.92% × 1.08 × 3.69
Jan 31, 2014 19.12% = 4.73% × 1.07 × 3.78
Oct 31, 2013 18.75% = 4.55% × 1.06 × 3.88
Jul 31, 2013 — = — × — × 4.30
Apr 30, 2013 — = — × — × 4.52
Jan 31, 2013 — = — × — × 4.66

Based on: 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-K (reporting date: 2018-10-31), 10-Q (reporting date: 2018-07-31), 10-Q (reporting date: 2018-04-30), 10-Q (reporting date: 2018-01-31), 10-K (reporting date: 2017-10-31), 10-Q (reporting date: 2017-07-31), 10-Q (reporting date: 2017-04-30), 10-Q (reporting date: 2017-01-31), 10-K (reporting date: 2016-10-31), 10-Q (reporting date: 2016-07-31), 10-Q (reporting date: 2016-04-30), 10-Q (reporting date: 2016-01-31), 10-K (reporting date: 2015-10-31), 10-Q (reporting date: 2015-07-31), 10-Q (reporting date: 2015-04-30), 10-Q (reporting date: 2015-01-31), 10-K (reporting date: 2014-10-31), 10-Q (reporting date: 2014-07-31), 10-Q (reporting date: 2014-04-30), 10-Q (reporting date: 2014-01-31), 10-K (reporting date: 2013-10-31), 10-Q (reporting date: 2013-07-31), 10-Q (reporting date: 2013-04-30), 10-Q (reporting date: 2013-01-31).

Two-Component Disaggregation of ROA

HP Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jul 31, 2019 13.01% = 7.18% × 1.81
Apr 30, 2019 12.26% = 6.67% × 1.84
Jan 31, 2019 12.90% = 7.15% × 1.81
Oct 31, 2018 15.39% = 9.11% × 1.69
Jul 31, 2018 13.24% = 7.95% × 1.67
Apr 30, 2018 13.56% = 7.84% × 1.73
Jan 31, 2018 10.93% = 7.15% × 1.53
Oct 31, 2017 7.67% = 4.85% × 1.58
Jul 31, 2017 7.38% = 4.66% × 1.59
Apr 30, 2017 8.52% = 4.94% × 1.72
Jan 31, 2017 8.92% = 5.17% × 1.73
Oct 31, 2016 8.60% = 5.17% × 1.66
Jul 31, 2016 12.22% = 5.42% × 2.26
Apr 30, 2016 13.31% = 4.54% × 2.93
Jan 31, 2016 14.81% = 4.26% × 3.48
Oct 31, 2015 4.26% = 4.41% × 0.97
Jul 31, 2015 4.26% = 4.30% × 0.99
Apr 30, 2015 4.63% = 4.33% × 1.07
Jan 31, 2015 4.91% = 4.50% × 1.09
Oct 31, 2014 4.86% = 4.50% × 1.08
Jul 31, 2014 4.94% = 4.54% × 1.09
Apr 30, 2014 5.29% = 4.92% × 1.08
Jan 31, 2014 5.05% = 4.73% × 1.07
Oct 31, 2013 4.84% = 4.55% × 1.06
Jul 31, 2013 — = — × —
Apr 30, 2013 — = — × —
Jan 31, 2013 — = — × —

Based on: 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-K (reporting date: 2018-10-31), 10-Q (reporting date: 2018-07-31), 10-Q (reporting date: 2018-04-30), 10-Q (reporting date: 2018-01-31), 10-K (reporting date: 2017-10-31), 10-Q (reporting date: 2017-07-31), 10-Q (reporting date: 2017-04-30), 10-Q (reporting date: 2017-01-31), 10-K (reporting date: 2016-10-31), 10-Q (reporting date: 2016-07-31), 10-Q (reporting date: 2016-04-30), 10-Q (reporting date: 2016-01-31), 10-K (reporting date: 2015-10-31), 10-Q (reporting date: 2015-07-31), 10-Q (reporting date: 2015-04-30), 10-Q (reporting date: 2015-01-31), 10-K (reporting date: 2014-10-31), 10-Q (reporting date: 2014-07-31), 10-Q (reporting date: 2014-04-30), 10-Q (reporting date: 2014-01-31), 10-K (reporting date: 2013-10-31), 10-Q (reporting date: 2013-07-31), 10-Q (reporting date: 2013-04-30), 10-Q (reporting date: 2013-01-31).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2019 is the increase in profitability measured by net profit margin ratio.