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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...
The following section summarizes insights on HP Inc's Return on Invested Capital:
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.
To view the full list of supported financial metrics please see Complete Metrics Listing.
Metrics similar to Return on Invested Capital in the efficiency category include:
A capital efficiency ratio used to measure a firm's ability to create value for all its stakeholders, debt, and equity.
Return on Invested Capital or ROIC is defined as:
Net Operating Profit After Tax
(/) Average Invested Capital
Return on Invested Capital
Return on Invested Capital is used to evaluate the ability of the company to create value for all its stakeholders, debt and equity. ROIC can be used to benchmark companies within an industry but it is also useful to consider its relationship to the Weighted Average Cost of Capital (WACC).
Since ROIC measures the company’s ability to generate a return on invested capital, and the WACC measures the minimum return required by the company’s capital providers (equity and debt), the difference between ROIC and WACC is referred to as Economic Profit or Excess Return.
Excess Return = Return on Invested Capital - Weighted Average Cost of Capital
The chart above depicts the distribution of return on invested capital for companies operating in the Information Technology sector in the Developed economic region. Over 2,140 companies were considered in this analysis, and 2,060 had meaningful values. The average return on invested capital of companies in the sector is -1.4% with a standard deviation of 21.2%.
HP Inc's Return on Invested Capital of NM ranks in the - percentile for the sector. The following table provides additional summary stats:
Economic Risk Region | Developed |
Total Constituents | 2,146 |
Included Constituents | 2,060 |
Min | -107.9% |
Max | 35.1% |
Median | 3.7% |
Mean | -1.4% |
Standard Deviation | 21.2% |
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