HP (BUE:HPQ) Inventory Turnover : 1.47 (As of Oct. 2024)

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What is HP Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. HP's Cost of Goods Sold for the three months ended in Oct. 2024 was ARS10,722,380 Mil. HP's Average Total Inventories for the quarter that ended in Oct. 2024 was ARS7,300,335 Mil. HP's Inventory Turnover for the quarter that ended in Oct. 2024 was 1.47.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. HP's Days Inventory for the three months ended in Oct. 2024 was 62.13.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. HP's Inventory-to-Revenue for the quarter that ended in Oct. 2024 was 0.54.

HP Inventory Turnover Historical Data

The historical data trend for HP's Inventory Turnover 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 Inventory Turnover Chart

HP Annual Data

Trend

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Oct24

Inventory Turnover

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8.98

7.99

7.83

8.39

8.19

HP Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
Inventory Turnover	Get a 7-Day Free Trial															1.78	2.08	1.39	1.43	1.47

HP Inventory Turnover Calculation

HP's Inventory Turnover for the fiscal year that ended in Oct. 2024 is calculated as

	Inventory Turnover (A: Oct. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Oct. 2024 )	/ (	(Total Inventories (A: Oct. 2023 )	+	Total Inventories (A: Oct. 2024 ))	/	count )
=	40488771.376	/ (	(2401699.964	+	7488400.255)	/	2 )
=	40488771.376	/	4945050.1095
=	8.19

HP's Inventory Turnover for the quarter that ended in Oct. 2024 is calculated as

	Inventory Turnover (Q: Oct. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Oct. 2024 )	/ (	(Total Inventories (Q: Jul. 2024 )	+	Total Inventories (Q: Oct. 2024 ))	/	count )
=	10722380.365	/ (	(7112269.688	+	7488400.255)	/	2 )
=	10722380.365	/	7300334.9715
=	1.47

HP (BUE:HPQ) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

HP's Days Inventory for the three months ended in Oct. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Oct. 2024 )	/	Cost of Goods Sold (Q: Oct. 2024 )	*	Days in Period
	=	7300334.9715	/	10722380.365	*	365 / 4
	=	62.13

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

HP's Inventory to Revenue for the quarter that ended in Oct. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Oct. 2024 )	/	Revenue (Q: Oct. 2024 )
	=	7300334.9715	/	13633350.464
	=	0.54

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

HP Inventory Turnover Related Terms

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Website

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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 US. HP completely outsources manufacturing and relies heavily on channel partners for its sales and marketing.