HP (MIL:1HPQ) ROCE % : 40.35% (As of Oct. 2024)

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What is HP ROCE %?

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 Oct. 2024 was 40.35%.

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 ROCE % Chart

HP Annual Data

Trend

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Oct24

ROCE %

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40.22

87.46

45.89

27.12

34.82

HP Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
ROCE %	Get a 7-Day Free Trial															33.14	29.20	34.26	33.96	40.35

HP ROCE % Calculation

HP's annualized ROCE % for the fiscal year that ended in Oct. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Oct. 2024 )		(A: Oct. 2023 )		(A: Oct. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Oct. 2024 )		(A: Oct. 2023 )		(A: Oct. 2024 )
	=	3857.436	/	( ( (35042.788 - 23190.136)	+	(36636.462 - 26334.666) )	/ 2 )
	=	3857.436	/	( (11852.652	+	10301.796)	/ 2 )
	=	3857.436	/	11077.224
	=	34.82 %

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

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Oct. 2024 )		(Q: Jul. 2024 )		(Q: Oct. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Oct. 2024 )		(Q: Jul. 2024 )		(Q: Oct. 2024 )
	=	4127.328	/	( ( (35090.398 - 24933.646)	+	(36636.462 - 26334.666) )	/ 2 )
	=	4127.328	/	( ( 10156.752	+	10301.796 )	/ 2 )
	=	4127.328	/	10229.274
	=	40.35 %

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

HP (MIL:1HPQ) 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.

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

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