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HP Operating Margin %

: 8.44% (As of Apr. 2022)
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Operating Margin % is calculated as Operating Income divided by its Revenue. HP's Operating Income for the three months ended in Apr. 2022 was $1,392 Mil. HP's Revenue for the three months ended in Apr. 2022 was $16,490 Mil. Therefore, HP's Operating Margin % for the quarter that ended in Apr. 2022 was 8.44%.

Warning Sign:

HP Inc operating margin has been in a 5-year decline. The average rate of decline per year is -1.9%.

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

HPQ' s Operating Margin % Range Over the Past 10 Years
Min: 5.11   Med: 7.57   Max: 9.15
Current: 8.6


HPQ's Operating Margin % is ranked better than
67.72% of 2376 companies
in the Hardware industry
Industry Median: 4.60 vs HPQ: 8.60

HP's 5-Year Average Operating Margin % Growth Rate was -1.90% per year.

HP's Operating Income for the three months ended in Apr. 2022 was $1,392 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2022 was $5,632 Mil.


HP Operating Margin % Historical Data

The historical data trend for HP's Operating 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
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.50 5.86 5.11 6.58 8.90

HP Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Operating 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 8.89 9.56 7.99 8.50 8.44

Competitive Comparison

For the Computer Hardware subindustry, HP's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % Distribution

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

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



HP Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

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

Operating Margin %=Operating Income (A: Oct. 2021 ) / Revenue (A: Oct. 2021 )
=5652 / 63487
=8.90 %

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

Operating Margin %=Operating Income (Q: Apr. 2022 ) / Revenue (Q: Apr. 2022 )
=1392 / 16490
=8.44 %

* 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.


HP  (NYSE:HPQ) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


HP Operating Margin % Related Terms

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


HP Business Description

HP logo
Industry
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

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