Analysis of Reportable Segments
HP Inc. operates in 3 segments: Personal Systems; Printing; and Corporate Investments.
Segment Profit Margin
HP Inc., profit margin by reportable segment
| Oct 31, 2018 | Oct 31, 2017 | Oct 31, 2016 | Oct 31, 2015 | Oct 31, 2014 | Oct 31, 2013 | |
|---|---|---|---|---|---|---|
| Personal Systems | 3.75% | 3.63% | 3.83% | 3.38% | 3.70% | 2.96% |
| Printing | 15.97% | 16.81% | 17.13% | 18.20% | 18.21% | 16.31% |
| Corporate Investments | -1,640.00% | -1,087.50% | -1,400.00% | -2,092.59% | -65.89% | -983.33% |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Personal Systems | Personal Systems segment profit margin ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level. |
| Printing | Printing segment profit margin ratio deteriorated from 2016 to 2017 and from 2017 to 2018. | |
| Corporate Investments | Corporate Investments segment profit margin ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018. |
Segment Profit Margin: Personal Systems
HP Inc.; Personal Systems; segment profit margin calculation
| Oct 31, 2018 | Oct 31, 2017 | Oct 31, 2016 | Oct 31, 2015 | Oct 31, 2014 | Oct 31, 2013 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Earnings from operations | 1,411) | 1,213) | 1,150) | 1,064) | 1,270) | 949) |
| Net revenue | 37,661) | 33,374) | 29,987) | 31,469) | 34,303) | 32,071) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 3.75% | 3.63% | 3.83% | 3.38% | 3.70% | 2.96% |
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
Segment profit margin = 100 × Earnings from operations ÷ Net revenue
= 100 × 1,411 ÷ 37,661 = 3.75%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Personal Systems | Personal Systems segment profit margin ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level. |
Segment Profit Margin: Printing
HP Inc.; Printing; segment profit margin calculation
| Oct 31, 2018 | Oct 31, 2017 | Oct 31, 2016 | Oct 31, 2015 | Oct 31, 2014 | Oct 31, 2013 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Earnings from operations | 3,323) | 3,161) | 3,128) | 3,865) | 4,185) | 3,890) |
| Net revenue | 20,805) | 18,801) | 18,260) | 21,232) | 22,979) | 23,854) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 15.97% | 16.81% | 17.13% | 18.20% | 18.21% | 16.31% |
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
Segment profit margin = 100 × Earnings from operations ÷ Net revenue
= 100 × 3,323 ÷ 20,805 = 15.97%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Printing | Printing segment profit margin ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Segment Profit Margin: Corporate Investments
HP Inc.; Corporate Investments; segment profit margin calculation
| Oct 31, 2018 | Oct 31, 2017 | Oct 31, 2016 | Oct 31, 2015 | Oct 31, 2014 | Oct 31, 2013 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Earnings from operations | (82) | (87) | (98) | (565) | (199) | (236) |
| Net revenue | 5) | 8) | 7) | 27) | 302) | 24) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | -1,640.00% | -1,087.50% | -1,400.00% | -2,092.59% | -65.89% | -983.33% |
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
Segment profit margin = 100 × Earnings from operations ÷ Net revenue
= 100 × -82 ÷ 5 = -1,640.00%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Corporate Investments | Corporate Investments segment profit margin ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018. |
Segment Return on Assets (Segment ROA)
HP Inc., ROA by reportable segment
| Oct 31, 2018 | Oct 31, 2017 | Oct 31, 2016 | Oct 31, 2015 | Oct 31, 2014 | Oct 31, 2013 | |
|---|---|---|---|---|---|---|
| Personal Systems | 10.49% | 9.98% | 10.76% | 11.16% | 10.49% | 7.99% |
| Printing | 24.24% | 29.97% | 31.41% | 42.97% | 41.59% | 36.34% |
| Corporate Investments | -1,640.00% | -2,900.00% | -9,800.00% | -1,008.93% | -585.29% | -191.87% |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Personal Systems | Personal Systems segment ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level. |
| Printing | Printing segment ROA deteriorated from 2016 to 2017 and from 2017 to 2018. | |
| Corporate Investments | Corporate Investments segment ROA improved from 2016 to 2017 and from 2017 to 2018. |
Segment ROA: Personal Systems
HP Inc.; Personal Systems; segment ROA calculation
| Oct 31, 2018 | Oct 31, 2017 | Oct 31, 2016 | Oct 31, 2015 | Oct 31, 2014 | Oct 31, 2013 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Earnings from operations | 1,411) | 1,213) | 1,150) | 1,064) | 1,270) | 949) |
| Assets | 13,447) | 12,156) | 10,686) | 9,534) | 12,104) | 11,870) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 10.49% | 9.98% | 10.76% | 11.16% | 10.49% | 7.99% |
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
Segment ROA = 100 × Earnings from operations ÷ Assets
= 100 × 1,411 ÷ 13,447 = 10.49%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Personal Systems | Personal Systems segment ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level. |
Segment ROA: Printing
HP Inc.; Printing; segment ROA calculation
| Oct 31, 2018 | Oct 31, 2017 | Oct 31, 2016 | Oct 31, 2015 | Oct 31, 2014 | Oct 31, 2013 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Earnings from operations | 3,323) | 3,161) | 3,128) | 3,865) | 4,185) | 3,890) |
| Assets | 13,706) | 10,548) | 9,959) | 8,994) | 10,063) | 10,705) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 24.24% | 29.97% | 31.41% | 42.97% | 41.59% | 36.34% |
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
Segment ROA = 100 × Earnings from operations ÷ Assets
= 100 × 3,323 ÷ 13,706 = 24.24%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Printing | Printing segment ROA deteriorated from 2016 to 2017 and from 2017 to 2018. |
Segment ROA: Corporate Investments
HP Inc.; Corporate Investments; segment ROA calculation
| Oct 31, 2018 | Oct 31, 2017 | Oct 31, 2016 | Oct 31, 2015 | Oct 31, 2014 | Oct 31, 2013 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Earnings from operations | (82) | (87) | (98) | (565) | (199) | (236) |
| Assets | 5) | 3) | 1) | 56) | 34) | 123) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | -1,640.00% | -2,900.00% | -9,800.00% | -1,008.93% | -585.29% | -191.87% |
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
Segment ROA = 100 × Earnings from operations ÷ Assets
= 100 × -82 ÷ 5 = -1,640.00%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Corporate Investments | Corporate Investments segment ROA improved from 2016 to 2017 and from 2017 to 2018. |
Segment Asset Turnover
HP Inc., asset turnover by reportable segment
| Oct 31, 2018 | Oct 31, 2017 | Oct 31, 2016 | Oct 31, 2015 | Oct 31, 2014 | Oct 31, 2013 | |
|---|---|---|---|---|---|---|
| Personal Systems | 2.80 | 2.75 | 2.81 | 3.30 | 2.83 | 2.70 |
| Printing | 1.52 | 1.78 | 1.83 | 2.36 | 2.28 | 2.23 |
| Corporate Investments | 1.00 | 2.67 | 7.00 | 0.48 | 8.88 | 0.20 |
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).
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Personal Systems | Personal Systems segment asset turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level. |
| Printing | Printing segment asset turnover ratio deteriorated from 2016 to 2017 and from 2017 to 2018. | |
| Corporate Investments | Corporate Investments segment asset turnover ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Segment Asset Turnover: Personal Systems
HP Inc.; Personal Systems; segment asset turnover calculation
| Oct 31, 2018 | Oct 31, 2017 | Oct 31, 2016 | Oct 31, 2015 | Oct 31, 2014 | Oct 31, 2013 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | 37,661) | 33,374) | 29,987) | 31,469) | 34,303) | 32,071) |
| Assets | 13,447) | 12,156) | 10,686) | 9,534) | 12,104) | 11,870) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 2.80 | 2.75 | 2.81 | 3.30 | 2.83 | 2.70 |
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
Segment asset turnover = Net revenue ÷ Assets
= 37,661 ÷ 13,447 = 2.80
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Personal Systems | Personal Systems segment asset turnover ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level. |
Segment Asset Turnover: Printing
HP Inc.; Printing; segment asset turnover calculation
| Oct 31, 2018 | Oct 31, 2017 | Oct 31, 2016 | Oct 31, 2015 | Oct 31, 2014 | Oct 31, 2013 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | 20,805) | 18,801) | 18,260) | 21,232) | 22,979) | 23,854) |
| Assets | 13,706) | 10,548) | 9,959) | 8,994) | 10,063) | 10,705) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 1.52 | 1.78 | 1.83 | 2.36 | 2.28 | 2.23 |
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
Segment asset turnover = Net revenue ÷ Assets
= 20,805 ÷ 13,706 = 1.52
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Printing | Printing segment asset turnover ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Segment Asset Turnover: Corporate Investments
HP Inc.; Corporate Investments; segment asset turnover calculation
| Oct 31, 2018 | Oct 31, 2017 | Oct 31, 2016 | Oct 31, 2015 | Oct 31, 2014 | Oct 31, 2013 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | 5) | 8) | 7) | 27) | 302) | 24) |
| Assets | 5) | 3) | 1) | 56) | 34) | 123) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 1.00 | 2.67 | 7.00 | 0.48 | 8.88 | 0.20 |
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
Segment asset turnover = Net revenue ÷ Assets
= 5 ÷ 5 = 1.00
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Corporate Investments | Corporate Investments segment asset turnover ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Net revenue
HP Inc., net revenue by reportable segment
US$ in millions
| Oct 31, 2018 | Oct 31, 2017 | Oct 31, 2016 | Oct 31, 2015 | Oct 31, 2014 | Oct 31, 2013 | |
|---|---|---|---|---|---|---|
| Personal Systems | 37,661) | 33,374) | 29,987) | 31,469) | 34,303) | 32,071) |
| Printing | 20,805) | 18,801) | 18,260) | 21,232) | 22,979) | 23,854) |
| Enterprise Group | —) | —) | —) | 27,907) | 27,814) | 28,183) |
| Enterprise Services | —) | —) | —) | 19,806) | 22,398) | 23,520) |
| Software | —) | —) | —) | 3,458) | 3,933) | 3,913) |
| HP Financial Services | —) | —) | —) | 3,216) | 3,498) | 3,629) |
| Corporate Investments | 5) | 8) | 7) | 27) | 302) | 24) |
| Total | 58,471) | 52,183) | 48,254) | 107,115) | 115,227) | 115,194) |
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).
Earnings from operations
HP Inc., earnings from operations by reportable segment
US$ in millions
| Oct 31, 2018 | Oct 31, 2017 | Oct 31, 2016 | Oct 31, 2015 | Oct 31, 2014 | Oct 31, 2013 | |
|---|---|---|---|---|---|---|
| Personal Systems | 1,411) | 1,213) | 1,150) | 1,064) | 1,270) | 949) |
| Printing | 3,323) | 3,161) | 3,128) | 3,865) | 4,185) | 3,890) |
| Enterprise Group | —) | —) | —) | 3,981) | 4,008) | 4,301) |
| Enterprise Services | —) | —) | —) | 1,051) | 803) | 679) |
| Software | —) | —) | —) | 760) | 872) | 866) |
| HP Financial Services | —) | —) | —) | 349) | 389) | 399) |
| Corporate Investments | (82) | (87) | (98) | (565) | (199) | (236) |
| Total | 4,652) | 4,287) | 4,180) | 10,505) | 11,328) | 10,848) |
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).
Assets
HP Inc., assets by reportable segment
US$ in millions
| Oct 31, 2018 | Oct 31, 2017 | Oct 31, 2016 | Oct 31, 2015 | Oct 31, 2014 | Oct 31, 2013 | |
|---|---|---|---|---|---|---|
| Personal Systems | 13,447) | 12,156) | 10,686) | 9,534) | 12,104) | 11,870) |
| Printing | 13,706) | 10,548) | 9,959) | 8,994) | 10,063) | 10,705) |
| Enterprise Group | —) | —) | —) | 33,499) | 27,236) | 30,858) |
| Enterprise Services | —) | —) | —) | 14,354) | 13,472) | 15,229) |
| Software | —) | —) | —) | 11,226) | 11,575) | 11,868) |
| HP Financial Services | —) | —) | —) | 13,093) | 13,529) | 12,011) |
| Corporate Investments | 5) | 3) | 1) | 56) | 34) | 123) |
| Corporate and unallocated assets | 7,464) | 10,206) | 8,364) | 16,126) | 15,193) | 13,012) |
| Total | 34,622) | 32,913) | 29,010) | 106,882) | 103,206) | 105,676) |
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).