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Net Working Capital Margin for HP Inc

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HPQ: HP Inc

HP Inc. provides personal computing, printing, 3D printing, hybrid work, gaming, and other related technologies in the United States and internationally. The company operates through three segments: P...

29.00 USD
Price
USD
Fair Value
Upside
27.43 - 39.80
52-week range

Analysis

Fiscal Years
Trailing Twelve Months
Fiscal Halfs
Fiscal Quarters
Daily
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The following section summarizes insights on HP Inc's Net Working Capital Margin:

Oct 2016Oct 2018Oct 2020Oct 2022Oct 2024-20.0%-10.0%0.0%10.0%

Performance Summary
  • HP's net working capital margin last quarter was -64.0%
  • HP's net working capital margin for fiscal years ending October 2020 to 2024 averaged -16.2%.
  • HP's operated at median net working capital margin of -16.9% from fiscal years ending October 2020 to 2024.
  • Looking back at the last 5 years, HP's net working capital margin peaked in October 2022 at -14.3%.
  • HP's net working capital margin hit its 5-year low in October 2024 of -17.4%.
  • HP's net working capital margin decreased in 2020 (-17.2%, +9.0%), 2023 (-16.9%, +18.5%), and 2024 (-17.4%, +2.9%) and increased in 2021 (-15.4%, -10.7%) and 2022 (-14.3%, -7.3%).

How does HP Inc's Net Working Capital Margin benchmark against competitors?

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We've identified the following companies as similar to HP Inc because they operate in a related industry or sector. We also considered size, growth, and various financial metrics to narrow down the list to the ones listed below.

Metric Usage: Net Working Capital Margin

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nwc_margin
Slug
number
Datatype
text
Format
current
Default Period
FY, Q
Periods Supported
Free
Plan

To view the full list of supported financial metrics please see Complete Metrics Listing.

Similar Metrics

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Metrics similar to Net Working Capital Margin in the efficiency category include:

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Net Working Capital Margin

Net working capital expressed as a percent of revenue.

Definition of Net Working Capital Margin

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The net working capital margin measures a company’s net working capital as a percentage of the revenue. The formula to calculate net working capital margin and an example calculation for HP’s trailing twelve months is outlined below:

Net Working Capital Margin  = Net Working Capital / Total Revenue
−64.0% = -8.645 B  /  53.878 B

The tables below summarizes HP’s performance over the last five years:

Fiscal YearNet Working CapitalRevenueMargin
2020-10-31-9.765 B56.639 B−17.2%
2021-10-31-9.769 B63.46 B−15.4%
2022-10-31-8.975 B62.91 B−14.3%
2023-10-31-9.083 B53.718 B−16.9%
2024-10-31-9.32 B53.559 B−17.4%

The tables below summarizes HP’s performance over the last four quarters:

Quarter EndingNet Working CapitalRevenueMargin
2024-04-30-8.033 B12.8 B−62.8%
2024-07-31-8.775 B13.519 B−64.9%
2024-10-31-9.32 B14.055 B−66.3%
2025-01-31-8.645 B13.504 B−64.0%

You can read more about Net Working Capital here.


Click the link below to download a spreadsheet with an example Net Working Capital Margin calculation for HP Inc below:

Sector Benchmark Analysis

Sector
Industry Group
Industry
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-2,520.6%-1,720.6%-920.6%567.1%0200400600

The chart above depicts the distribution of net working capital margin for companies operating in the Information Technology sector in the Developed economic region. Over 2,400 companies were considered in this analysis, and 2,313 had meaningful values. The average net working capital margin of companies in the sector is -8.6% with a standard deviation of 249.4%.

HP Inc's Net Working Capital Margin of -64.0% ranks in the 19.3% percentile for the sector. The following table provides additional summary stats:

Net Working Capital Margin In The Information Technology Sector
Economic Risk RegionDeveloped
Total Constituents2,409
Included Constituents2,313
Min-2,483.1%
Max544.0%
Median23.2%
Mean-8.6%
Standard Deviation249.4%

You can find companies with similar net working capital margin using this stock screener.

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