HP Inc. key statistics and ratios
In fiscal 2025, HP Inc. had an operating margin of 5.7% and a current ratio of 0.77. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.
Financial ratios
| Fiscal year | 2009Oct 2009 | 2010Oct 2010 | 2011Oct 2011 | 2012Oct 2012 | 2013Oct 2013 | 2014Oct 2014 | 2015Oct 2015 | 2016Oct 2016 | 2017Oct 2017 | 2018Oct 2018 | 2019Oct 2019 | 2020Oct 2020 | 2021Oct 2021 | 2022Oct 2022 | 2023Oct 2023 | 2024Oct 2024 | 2025Oct 2025 | LTMJul 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross margin | — | — | — | — | — | 19.8% | 19.3% | 18.7% | 18.4% | 18.2% | 19.0% | 18.4% | 21.1% | 19.5% | 21.4% | 22.1% | 20.6% | 19.9% |
| Operating margin | 8.8% | 9.1% | 7.6% | −9.2% | 6.4% | 7.5% | 7.6% | 7.4% | 6.5% | 6.6% | 6.6% | 6.1% | 8.4% | 7.2% | 6.4% | 7.1% | 5.7% | 5.4% |
| Net margin | 6.7% | 7.0% | 5.6% | −10.5% | 4.6% | 8.8% | 8.8% | 5.2% | 4.9% | 9.1% | 5.4% | 5.0% | 10.3% | 5.0% | 6.1% | 5.2% | 4.6% | 4.1% |
| Free-cash-flow margin | 8.5% | 6.2% | 6.4% | 5.7% | 7.5% | 15.0% | 6.7% | 5.8% | 6.3% | 6.8% | 6.8% | 6.6% | 9.2% | 5.9% | 5.5% | 5.9% | 5.1% | 6.6% |
| Return on equity | 18.9% | 21.6% | 17.9% | −41.4% | 20.6% | 18.6% | 16.7% | 20.9% | — | — | — | — | — | — | — | — | — | — |
| Return on assets | 6.7% | 7.3% | 5.6% | −10.6% | 4.8% | 4.8% | 4.3% | 3.7% | 8.2% | 15.8% | 9.3% | 8.3% | 17.9% | 8.1% | 8.6% | 7.2% | 6.2% | 5.6% |
| Asset turnover | 1.00 | 1.05 | 1.00 | 1.01 | 1.05 | 0.54 | 0.49 | 0.71 | 1.68 | 1.73 | 1.73 | 1.66 | 1.73 | 1.63 | 1.42 | 1.39 | 1.35 | 1.35 |
| Current ratio | 1.22 | 1.10 | 1.01 | 1.09 | 1.11 | 1.15 | 1.23 | 0.98 | 1.00 | 0.85 | 0.80 | 0.79 | 0.76 | 0.75 | 0.73 | 0.72 | 0.77 | 0.79 |
| Debt to equity | 39.1% | 55.1% | 79.3% | 126.7% | 82.9% | 73.0% | 32.1% | — | — | — | — | — | — | — | — | — | — | — |
| Interest cover (operating income ÷ interest) | 17.0x | 27.5x | 18.5x | n/m | 9.7x | 6.9x | 6.9x | 13.0x | 10.9x | 12.3x | 16.0x | 14.4x | 21.1x | 12.7x | 6.3x | 8.4x | 7.4x | 8.2x |
| Effective tax rate | — | — | — | — | 21.5% | 24.3% | −5.3% | 29.1% | 22.9% | — | −24.9% | 12.3% | 13.6% | 27.6% | −11.1% | 15.4% | 5.2% | 12.3% |
| R&D as % of revenue | 2.5% | 2.3% | 2.6% | 2.8% | 2.8% | 2.3% | 2.3% | 2.5% | 2.3% | 2.4% | 2.6% | 2.6% | 2.9% | 2.6% | 2.9% | 3.1% | 2.9% | 2.7% |
| SG&A as % of revenue | 10.2% | 10.2% | 10.7% | 11.2% | 11.8% | 9.5% | 9.2% | 7.9% | 8.7% | 8.7% | 9.1% | 8.7% | 9.0% | 8.4% | 10.0% | 10.6% | 10.5% | 10.1% |
| Capital spending as % of revenue | 3.2% | 3.3% | 3.6% | 3.1% | 2.8% | 6.8% | 7.0% | 0.9% | 0.8% | 0.9% | 1.1% | 1.0% | 0.9% | 1.2% | 1.1% | 1.1% | 1.6% | 1.3% |
| Free cash flow ÷ net income | 126.4% | 88.9% | 114.5% | — | 164.5% | 169.2% | 75.2% | 112.9% | 129.7% | 74.8% | 126.4% | 132.7% | 89.1% | 118.1% | 91.3% | 113.8% | 110.7% | 158.3% |
| Dividends ÷ net income | 10.0% | 8.8% | 11.9% | — | 21.6% | 23.6% | 27.4% | 34.4% | 35.4% | 16.9% | 30.8% | 35.4% | 14.3% | 33.1% | 31.8% | 38.7% | 43.0% | 44.7% |
| Dividends and buybacks ÷ free cash flow | 61.0% | 151.7% | 135.3% | 38.4% | 31.4% | 46.1% | 120.7% | 71.6% | 70.4% | 86.8% | 84.7% | 109.9% | 123.3% | 144.2% | 38.2% | 100.6% | 69.2% | 59.8% |
| Quarter | 2024 Q4Oct 2024 | 2025 Q1Jan 2025 | 2025 Q2Apr 2025 | 2025 Q3Jul 2025 | 2025 Q4Oct 2025 | 2026 Q1Jan 2026 | 2026 Q2Apr 2026 | 2026 Q3Jul 2026 |
|---|---|---|---|---|---|---|---|---|
| Gross margin | 21.4% | 21.0% | 20.7% | 20.5% | 20.2% | 19.6% | 20.9% | 18.8% |
| Operating margin | 7.1% | 6.3% | 4.9% | 5.1% | 6.6% | 5.3% | 4.2% | 5.7% |
| Net margin | 6.4% | 4.2% | 3.1% | 5.5% | 5.4% | 3.8% | 3.1% | 4.2% |
| Free-cash-flow margin | 10.5% | 0.5% | −1.1% | 10.4% | 9.7% | 1.0% | 5.2% | 9.9% |
| Current ratio | 0.72 | 0.72 | 0.73 | 0.74 | 0.77 | 0.76 | 0.79 | 0.79 |
| R&D as % of revenue | 2.8% | 2.9% | 3.0% | 2.9% | 2.7% | 2.7% | 3.0% | 2.5% |
| SG&A as % of revenue | 10.0% | 10.8% | 11.2% | 10.4% | 9.8% | 10.4% | 10.5% | 9.8% |
Financial health
- Short-term assets cover short-term liabilities $26.7bn of assets due within a year against $34.0bn of liabilities due within a year.
- Short-term assets cover long-term liabilities Not assessable from the reported split. Not assessable.
- More cash than debt $4.2bn of cash against $9.2bn of debt.
- Debt below 40% of shareholders' equity Equity or debt not reported. Not assessable.
- Debt burden no higher than five years ago Five-year comparison not available. Not assessable.
- A year's operating cash flow covers at least 20% of debt $4.7bn of operating cash flow against $9.2bn of debt.
- Operating profit covers interest at least five times over Operating income of $3.2bn against $394m of interest.
Moat
Moderate moat
How hard HP's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.
- Returns on capital 11 / 20
Net income has been a median 7.5% of total assets over 10 years.
- Durability 11 / 20
Operating margin has been a median 6.4%; its worst year was 5.4%.
- Cash conversion 13 / 20
Free cash flow was positive in 10 of 10 years, at a median 6.6% of revenue.
- Discipline 20 / 20
The diluted share count fell 26.8% over five years; stock-based pay has been a median 0.5% of revenue.
AI disruption exposure: Medium. In this industry, AI could change how the product is made or sold, without replacing the core asset. The score above includes a 5-point deduction for that exposure (69 before it).
Compare with peers
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