GURUFOCUS.COM » STOCK LIST » USA » NYSE » HP Inc (NYSE:HPQ) » Definitions » Gross Margin %
Switch to:

HP Gross Margin %

: 20.21% (As of Apr. 2022)
View and export this data going back to 1957. Start your Free Trial

Gross Margin % is calculated as gross profit divided by its revenue. HP's Gross Profit for the three months ended in Apr. 2022 was $3,333 Mil. HP's Revenue for the three months ended in Apr. 2022 was $16,490 Mil. Therefore, HP's Gross Margin % for the quarter that ended in Apr. 2022 was 20.21%.


The historical rank and industry rank for HP's Gross Margin % or its related term are showing as below:

HPQ' s Gross Margin % Range Over the Past 10 Years
Min: 18.25   Med: 19.16   Max: 23.24
Current: 20.42


During the past 13 years, the highest Gross Margin % of HP was 23.24%. The lowest was 18.25%. And the median was 19.16%.

HPQ's Gross Margin % is ranked worse than
58.99% of 2348 companies
in the Hardware industry
Industry Median: 24.24 vs HPQ: 20.42

HP had a gross margin of 20.21% for the quarter that ended in Apr. 2022 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for HP was 1.90% per year.


HP Gross Margin % Historical Data

The historical data trend for HP's Gross Margin % 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.

* Premium members only.

HP Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.40 18.25 19.01 18.43 21.13

HP Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.67 22.16 19.58 19.88 20.21

Competitive Comparison

For the Computer Hardware subindustry, HP's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

HP Gross Margin % Distribution

For the Hardware industry and Technology sector, HP's Gross Margin % distribution charts can be found below:

* The bar in red indicates where HP's Gross Margin % falls into.



HP Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

HP's Gross Margin for the fiscal year that ended in Oct. 2021 is calculated as

Gross Margin % (A: Oct. 2021 )=Gross Profit (A: Oct. 2021 ) / Revenue (A: Oct. 2021 )
=13417 / 63487
=(Revenue - Cost of Goods Sold) / Revenue
=(63487 - 50070) / 63487
=21.13 %

HP's Gross Margin for the quarter that ended in Apr. 2022 is calculated as


Gross Margin % (Q: Apr. 2022 )=Gross Profit (Q: Apr. 2022 ) / Revenue (Q: Apr. 2022 )
=3333 / 16490
=(Revenue - Cost of Goods Sold) / Revenue
=(16490 - 13157) / 16490
=20.21 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


HP  (NYSE:HPQ) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

HP had a gross margin of 20.21% for the quarter that ended in Apr. 2022 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


HP Gross Margin % Related Terms

Thank you for viewing the detailed overview of HP's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


HP Business Description

HP logo
Address
1501 Page Mill Road, Palo Alto, CA, USA, 94304
HP Inc. is a leading provider of computers, printers, and printer supplies. The company's three operating business segments are its personal systems, containing notebooks, desktops, and workstations; and its printing segment which contains supplies, consumer hardware, and commercial hardware; and corporate investments. In 2015, Hewlett-Packard was separated into HP Inc. and Hewlett Packard Enterprise and the Palo Alto, California-based company sells on a global scale.
Executives
Rucker Kim K.w. director KRAFT FOODS GROUP, INC. THREE LAKES DRIVE NORTHFIELD IL 60093
Clemmer Richard L director P O BOX 34552 LAS VEGAS NV 89129
Miscik Judith A director 300 RENAISSANCE CENTER M/C: 482-C24-A68 DETROIT MI 48265
Faust Jonathan P officer: Global Controller C/O HP INC 1501 PAGE MILL ROAD PALO ALTO CA 94304
Buffett Warren E 10 percent owner 3555 FARNAM ST STE 1440 OMAHA NE 68131
Berkshire Hathaway Inc 10 percent owner 3555 FARNAM STREET OMAHA NE 68131
Broussard Bruce D director 500 W. MAIN STREET C/O HUMANA LAW DEPT. LOUISVILLE KY 40202
Cho Alex officer: President, Personal Systems HP 1501 PAGE MILL ROAD PALO ALTO CA 94304
Anderson Harvey officer: Chief Legal Officer & Sec C/O HP INC. 1501 PAGE MILL RD PALO ALTO CA 94304
Ludgate Kristen M officer: Chief People Officer 3M COMPANY OFFICE OF GENERAL COUNSEL 3M CENTER ST. PAUL MN 55144-1000
Weiszhaar Barbara Barton officer: Acting Controller C/O HP INC. 1501 PAGE MILL ROAD PALO ALTO CA 93404
Mohr Cheryl A. officer: Acting Chief HR Officer C/O HP INC. 1501 PAGE MILL RD PALO ALTO CA 94304
Schell Christoph officer: Chief Commercial Officer 1501 PAGE MILL ROAD PALO ALTO CA 94304
Tran Tuan officer: President of Printing 1501 PAGE MILL ROAD PALO ALTO CA 94304
Matsuoka Yoky director HP 1501 PAGE MILL ROAD PALO ALTO CA 94304

HP Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)