Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Long-term Activity Ratios (Summary)
HP Inc., long-term (investment) activity ratios (quarterly data)
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 analysis covers multiple financial ratios over several quarterly periods, highlighting trends and fluctuations of operational efficiency and utilization metrics.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio shows a general decline over the observed periods. Initially, values are stable around 9.8 to 9.99 for several quarters between early 2014 to early 2015, indicating consistent efficiency in generating sales from net fixed assets.
- A significant and abrupt increase is seen in early 2016 where the ratio spikes dramatically to 58.05, followed by a sharp decline over subsequent quarters, dropping down to 23.85 by mid-2019. This volatility may be due to changes in asset base or revenue recognition patterns and suggests a period of operational restructuring or asset revaluation.
- After this volatile phase, from early 2017 onwards, the ratio moves steadily downward, indicating a gradual reduction in efficiency or an increase in fixed assets relative to sales.
- Total Asset Turnover
- The total asset turnover ratio remains relatively stable in the initial periods with minor fluctuations around 1.06 to 1.09 from early 2014 through early 2015, representing consistent efficiency in using total assets to generate sales.
- Similar to net fixed asset turnover, total asset turnover experiences a large, brief excess in 2016 where values peak at 3.48 and then rapidly decline to lower levels around 1.53-1.84 by mid-2019. This pattern complements the net fixed asset turnover trend, signifying an unusual event or accounting adjustment impacting multiple asset efficiency indicators.
- From 2017 onwards, the ratio shows modest recovery and stabilization, suggesting some improvement in asset utilization efficiency compared to the sharp declines observed previously.
- Equity Turnover
- Equity turnover, reported only until early 2015, exhibits a slight downward trend from 4.12 to 3.72, indicating a marginal decrease in how effectively the company utilizes shareholder equity to generate revenue in that period.
- The absence of data for subsequent quarters limits the ability to analyze longer-term trends in this area.
In summary, the ratios demonstrate a period of significant operational or accounting changes around 2016, reflected in sharp spikes and declines particularly in fixed and total asset turnover. Post this period, there is a clear trend towards gradual stabilization with modest declines or improvements depending on the ratio. These patterns suggest strategic adjustments impacting asset deployment and revenue generation efficiency during the observed periods.
Net Fixed Asset Turnover
HP Inc., net fixed asset turnover calculation (quarterly data)
| Jul 31, 2019 | Apr 30, 2019 | Jan 31, 2019 | Oct 31, 2018 | Jul 31, 2018 | Apr 30, 2018 | Jan 31, 2018 | Oct 31, 2017 | Jul 31, 2017 | Apr 30, 2017 | Jan 31, 2017 | Oct 31, 2016 | Jul 31, 2016 | Apr 30, 2016 | Jan 31, 2016 | Oct 31, 2015 | Jul 31, 2015 | Apr 30, 2015 | Jan 31, 2015 | Oct 31, 2014 | Jul 31, 2014 | Apr 30, 2014 | Jan 31, 2014 | Oct 31, 2013 | Jul 31, 2013 | Apr 30, 2013 | Jan 31, 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||||||
| Net revenue | |||||||||||||||||||||||||||||||||||
| Property, plant and equipment, net | |||||||||||||||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||||||||
| Net fixed asset turnover1 | |||||||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||||||||||||||
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).
1 Q3 2019 Calculation
Net fixed asset turnover
= (Net revenueQ3 2019
+ Net revenueQ2 2019
+ Net revenueQ1 2019
+ Net revenueQ4 2018)
÷ Property, plant and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Revenue Trends
- Over the period examined, net revenue exhibited fluctuations with an overall slight decline from early 2013 through early 2016, followed by a moderate recovery. Net revenue started at approximately $28.4 billion in January 2013, reached lower points around $25.3 billion in mid-2015, and then showed an increase to around $14.6 billion by mid-2019 in partial or adjusted terms. The data suggests some volatility quarter-to-quarter but no consistent upward or downward trend for the entire period.
- Property, Plant, and Equipment (PPE), Net
- The net value of property, plant, and equipment remained relatively stable from 2013 to 2015, fluctuating around the $11 billion mark. From 2016 onward, reported values in the data set significantly decreased in scale to values around $1.5 billion to $2.5 billion, increasing steadily quarter over quarter within this lower range. This might indicate a change in reporting scope, asset disposals, or reclassification rather than actual asset decline.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio showed markedly different scales over the periods. Between July 2013 and October 2015, the ratio remained close to 9.6-10, reflecting efficient utilization of fixed assets to generate revenue. However, from January 2016 onward, the ratio surged dramatically into the range of 25 to 58, then trended downward gradually to approximately 23.9 by July 2019. This significant increase corresponds temporally with the reduction in absolute PPE net values, suggesting a possible impact from changes in asset base valuation or accounting practices. The downward trend in later years indicates a slight reduction in turnover efficiency or asset productivity.
- General Observations
- The data suggests a period of asset base contraction or reevaluation starting around 2016, coupled with fluctuating but relatively stable revenue streams. The sharp increase followed by gradual decline in fixed asset turnover implies a structural change in asset management or accounting rather than organic business growth. These patterns warrant closer examination for underlying causes such as asset sales, impairments, or shifts in business focus.
Total Asset Turnover
HP Inc., total asset turnover calculation (quarterly data)
| Jul 31, 2019 | Apr 30, 2019 | Jan 31, 2019 | Oct 31, 2018 | Jul 31, 2018 | Apr 30, 2018 | Jan 31, 2018 | Oct 31, 2017 | Jul 31, 2017 | Apr 30, 2017 | Jan 31, 2017 | Oct 31, 2016 | Jul 31, 2016 | Apr 30, 2016 | Jan 31, 2016 | Oct 31, 2015 | Jul 31, 2015 | Apr 30, 2015 | Jan 31, 2015 | Oct 31, 2014 | Jul 31, 2014 | Apr 30, 2014 | Jan 31, 2014 | Oct 31, 2013 | Jul 31, 2013 | Apr 30, 2013 | Jan 31, 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||||||
| Net revenue | |||||||||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||||||||
| Total asset turnover1 | |||||||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||||||||||||||
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).
1 Q3 2019 Calculation
Total asset turnover
= (Net revenueQ3 2019
+ Net revenueQ2 2019
+ Net revenueQ1 2019
+ Net revenueQ4 2018)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Revenue
- The net revenue figures fluctuate over the periods analyzed, displaying a general downward trend from January 2013 through April 2016, followed by a gradual recovery. Initial revenue values start at approximately $28.4 billion in early 2013, decreasing to a low around $12.2 billion in January 2016. Subsequently, revenue shows a steady increase, reaching approximately $14.6 billion by mid-2019. This pattern may reflect seasonal impacts, restructuring, or market conditions affecting revenue generation across quarters.
- Total Assets
- Total assets exhibit a declining trend from early 2013 through early 2016, moving from about $106.7 billion down to approximately $25.5 billion. This sharp drop indicates a significant shift, possibly due to divestitures, asset write-downs, or organizational restructuring. From 2016 onward, total assets show a moderate increase, rising to around $32.4 billion by the middle of 2019, suggesting stabilization or growth in asset base following the prior contraction.
- Total Asset Turnover Ratio
- The total asset turnover ratio demonstrates variability throughout the timeline. Prior to 2016, the ratio steadily increases from approximately 1.06 to a peak near 1.09, indicating improved efficiency in generating revenue from assets. However, in early 2016, a marked spike in the ratio occurs, reaching values above 3.48, which corresponds temporally with the significant asset base reduction observed. Following this spike, the ratio declines over subsequent quarters, stabilizing around 1.5 to 1.8 in later periods. This pattern suggests the efficiency metric was temporarily distorted by the asset base contraction but returned to a normalized range consistent with historical data.
- Overall Trends and Insights
- The data indicates a major organizational or structural adjustment between 2015 and 2016, markedly impacting the asset base and financial ratios. Volume and scale, as represented by net revenue and total assets, decreased substantially during this period, after which gradual recovery is evident. Asset utilization, as measured by turnover ratios, experienced temporary distortion due to asset reductions but realigned to prior levels subsequently. These trends collectively suggest a significant reshaping of business operations with eventual stabilization and moderate growth resumption.
Equity Turnover
HP Inc., equity turnover calculation (quarterly data)
| Jul 31, 2019 | Apr 30, 2019 | Jan 31, 2019 | Oct 31, 2018 | Jul 31, 2018 | Apr 30, 2018 | Jan 31, 2018 | Oct 31, 2017 | Jul 31, 2017 | Apr 30, 2017 | Jan 31, 2017 | Oct 31, 2016 | Jul 31, 2016 | Apr 30, 2016 | Jan 31, 2016 | Oct 31, 2015 | Jul 31, 2015 | Apr 30, 2015 | Jan 31, 2015 | Oct 31, 2014 | Jul 31, 2014 | Apr 30, 2014 | Jan 31, 2014 | Oct 31, 2013 | Jul 31, 2013 | Apr 30, 2013 | Jan 31, 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||||||
| Net revenue | |||||||||||||||||||||||||||||||||||
| Total HP stockholders’ equity (deficit) | |||||||||||||||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||||||||
| Equity turnover1 | |||||||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||||||||||||||
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).
1 Q3 2019 Calculation
Equity turnover
= (Net revenueQ3 2019
+ Net revenueQ2 2019
+ Net revenueQ1 2019
+ Net revenueQ4 2018)
÷ Total HP stockholders’ equity (deficit)
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends across the observed periods.
- Net Revenue
-
Net revenue exhibits a fluctuating pattern with some periods of decline and recovery. Initially, from January 2013 to October 2013, revenue shows modest variation with a peak at 29,131 million US dollars in October 2013. Thereafter, net revenue generally trends downward through 2015, reaching a low point in April 2016 at 11,588 million dollars. Starting early 2016, a recovery is seen, with revenue gradually increasing and surpassing previous lows, reaching 14,603 million dollars by July 2019. Overall, the data suggests volatility in revenue with a mid-term trough followed by a moderate upward trend.
- Total HP Stockholders’ Equity (Deficit)
-
The stockholders' equity figure shows a marked shift from positive to negative territory across the dataset. From January 2013 through October 2015, equity remains positive and generally increases, peaking at 28,768 million dollars in October 2015. In contrast, starting January 2016, equity turns negative and remains so throughout the subsequent periods. The deficit appears largest around January 2016 at -4,909 million dollars. After this sharp decline, the deficit fluctuates but does not return to positive values during the observed timeline, showing some reduction in magnitude toward the end of the period but still indicating a weakened equity position.
- Equity Turnover Ratio
-
Equity turnover data is only available for part of 2013 and 2014, with values ranging between 3.72 and 4.17. The ratio shows a slight downward trend from 2013 (4.12) to early 2015 (3.72), suggesting a marginal decrease in efficiency of utilizing equity to generate revenue. No data is present for later periods, possibly due to the transition into negative equity, impacting the reliability or calculation of this ratio.
In summary, the trends indicate that while net revenue experiences volatility with a decline followed by recovery, the stockholders’ equity undergoes a significant deterioration from strong positive to sustained negative values, implying heightened financial challenges or structural changes affecting equity. The partial equity turnover data suggests a slight reduction in operational efficiency during the period it was reported. The negative equity stance post-2015 may correlate with strategic, operational, or accounting shifts within the company.