Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
HP Inc., liquidity ratios
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | HP Inc. current ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | HP Inc. quick ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | HP Inc. cash ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Current Ratio
HP Inc., current ratio calculation, comparison to benchmarks
| Oct 31, 2018 | Oct 31, 2017 | Oct 31, 2016 | Oct 31, 2015 | Oct 31, 2014 | Oct 31, 2013 | ||
|---|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Apple Inc. | 1.12 | — | — | — | — | — | |
| Arista Networks Inc. | — | — | — | — | — | — | |
| Cisco Systems Inc. | 2.29 | — | — | — | — | — | |
| Super Micro Computer Inc. | 1.89 | — | — | — | — | — | |
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 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | HP Inc. current ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018. |
Quick Ratio
HP Inc., quick ratio calculation, comparison to benchmarks
| Oct 31, 2018 | Oct 31, 2017 | Oct 31, 2016 | Oct 31, 2015 | Oct 31, 2014 | Oct 31, 2013 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 5,166) | 6,997) | 6,288) | 17,433) | 15,133) | 12,163) | |
| Accounts receivable, net | 5,113) | 4,414) | 4,114) | 13,363) | 13,832) | 15,876) | |
| Financing receivables | —) | —) | —) | 2,918) | 2,946) | 3,144) | |
| Total quick assets | 10,279) | 11,411) | 10,402) | 33,714) | 31,911) | 31,183) | |
| Current liabilities | 25,131) | 22,412) | 18,808) | 42,191) | 43,735) | 45,521) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.41 | 0.51 | 0.55 | 0.80 | 0.73 | 0.69 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Apple Inc. | 0.99 | — | — | — | — | — | |
| Arista Networks Inc. | — | — | — | — | — | — | |
| Cisco Systems Inc. | 2.11 | — | — | — | — | — | |
| Super Micro Computer Inc. | 0.70 | — | — | — | — | — | |
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
Quick ratio = Total quick assets ÷ Current liabilities
= 10,279 ÷ 25,131 = 0.41
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | HP Inc. quick ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Cash Ratio
HP Inc., cash ratio calculation, comparison to benchmarks
| Oct 31, 2018 | Oct 31, 2017 | Oct 31, 2016 | Oct 31, 2015 | Oct 31, 2014 | Oct 31, 2013 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 5,166) | 6,997) | 6,288) | 17,433) | 15,133) | 12,163) | |
| Total cash assets | 5,166) | 6,997) | 6,288) | 17,433) | 15,133) | 12,163) | |
| Current liabilities | 25,131) | 22,412) | 18,808) | 42,191) | 43,735) | 45,521) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.21 | 0.31 | 0.33 | 0.41 | 0.35 | 0.27 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Apple Inc. | 0.57 | — | — | — | — | — | |
| Arista Networks Inc. | — | — | — | — | — | — | |
| Cisco Systems Inc. | 1.72 | — | — | — | — | — | |
| Super Micro Computer Inc. | 0.14 | — | — | — | — | — | |
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
Cash ratio = Total cash assets ÷ Current liabilities
= 5,166 ÷ 25,131 = 0.21
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | HP Inc. cash ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |