HP (HPQ) ROCE %

: 29.68% (As of Jan. 2024)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. HP's annualized ROCE % for the quarter that ended in Jan. 2024 was 29.68%.

HP ROCE % Historical Data

The historical data trend for HP's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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HP Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

ROCE %

31.30

41.48

86.89

42.87

28.08

HP Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROCE %																24.10	25.78	36.01	32.42	29.68

HP ROCE % Calculation

HP's annualized ROCE % for the fiscal year that ended in Oct. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Oct. 2023 )		(A: Oct. 2022 )		(A: Oct. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Oct. 2023 )		(A: Oct. 2022 )		(A: Oct. 2023 )
	=	3485	/	( ( (38494 - 26189)	+	(37004 - 24488) )	/ 2 )
	=	3485	/	( (12305	+	12516)	/ 2 )
	=	3485	/	12410.5
	=	28.08 %

HP's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	3636	/	( ( (37004 - 24488)	+	(35846 - 23857) )	/ 2 )
	=	3636	/	( ( 12516	+	11989 )	/ 2 )
	=	3636	/	12252.5
	=	29.68 %

(1) Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

HP (NYSE:HPQ) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

HP ROCE % Related Terms

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HP (HPQ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » HP Inc (NYSE:HPQ) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

HPQ:Mexico 1HPQ:Italy 7HP:Germany 7HP:Germany 7HP:Germany 7HP:Germany HPQB34:Brazil HPQ:Austria HPQ:Argentina

Address

1501 Page Mill Road, Palo Alto, CA, USA, 94304

Website

https://www.hp.com

HP (formerly Hewlett-Packard) is a behemoth in the PC and printing markets. It has focused on these markets since it exited IT infrastructure in 2015 with the split from Hewlett Packard Enterprise. HP focuses on the commercial market, but maintains sales of consumer devices and printers. The firm has a broad and global customer base, with only one third of sales coming from the U.S. It completely outsources manufacturing and relies heavily on channel partners for its sales and marketing.

Executives

Enrique Lores	officer: President, PSS	3000 HANOVER STREET, PALO ALTO CA 94304
Alex Cho	officer: President, Personal Systems	HP, 1501 PAGE MILL ROAD, PALO ALTO CA 94304
David W Meline	director	3M COMPANY, 3M OFFICE OF GENERAL COUNSEL, ST PAUL MN 55144-1000
Berkshire Hathaway Inc	10 percent owner	3555 FARNAM STREET, OMAHA NE 68131
Marie Myers	officer: Global Controller, HFS & PAO	3000 HANOVER STREET, PALO ALTO CA 94304
Subra Suresh	director	HP, 1501 PAGE MILL RD BLDG 5, PALO ALTO CA 94036
David P. Mcquarrie	officer: Chief Commercial Officer	C/O HP INC., 1501 PAGE MILL RD, PALO ALTO CA 94304
Shumeet Banerji	director	C/O HEWLETT-PACKARD COMPANY, 3000 HANOVER STREET, PALO ALTO CA 94304
Jonathan P Faust	officer: Global Controller	C/O HP INC, 1501 PAGE MILL ROAD, PALO ALTO CA 94304
Tuan Tran	officer: Pres Imaging Prtng & Solutions	1501 PAGE MILL ROAD, PALO ALTO CA 94304
Julie M Jacobs	officer: Chief Legal Officer and GC	22000 AOL WAY, DULLES VA 20166
Kristen M Ludgate	officer: Chief People Officer	3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST. PAUL MN 55144-1000
Rucker Kim K.w.	director	KRAFT FOODS GROUP, INC., THREE LAKES DRIVE, NORTHFIELD IL 60093
Richard L Clemmer	director	P O BOX 34552, LAS VEGAS NV 89129
Judith A Miscik	director	300 RENAISSANCE CENTER, M/C: 482-C24-A68, DETROIT MI 48265