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Source: Based on data from Hewlett-Packard Co. Annual ReportsRatioDescriptionThe company

Inventory turnoverAn activity ratio calculated as cost of goods sold divided by inventory.Hewlett-Packard Co.'s inventory turnover improved from 2011 to 2012 but then slightly deteriorated from 2012 to 2013.

Receivables turnoverAn activity ratio equal to revenue divided by receivables.Hewlett-Packard Co.'s receivables turnover improved from 2011 to 2012 but then slightly deteriorated from 2012 to 2013 not reaching 2011 level.

Payables turnoverAn activity ratio calculated as cost of goods sold divided by payables.Hewlett-Packard Co.'s payables turnover increased from 2011 to 2012 but then declined significantly from 2012 to 2013.

Working capital turnoverAn activity ratio calculated as revenue divided by working capital.Hewlett-Packard Co.'s working capital turnover deteriorated from 2011 to 2012 and from 2012 to 2013.

Average inventory processing periodAn activity ratio equal to the number of days in the period divided by inventory turnover over the period.Hewlett-Packard Co.'s average inventory processing period improved from 2011 to 2012 but then slightly deteriorated from 2012 to 2013.

Average receivable collection periodAn activity ratio equal to the number of days in the period divided by receivables turnoverd.

Operating cycleEqual to average inventory processing period plus average receivables collection period.Hewlett-Packard Co.'s operating cycle improved from 2011 to 2012 but then slightly deteriorated from 2012 to 2013 not reaching 2011 level.

Average payables payment periodAn estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.Hewlett-Packard Co.'s average payables payment period declined from 2011 to 2012 but then increased from 2012 to 2013 exceeding 2011 level.

Cash conversion cycleA financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.Hewlett-Packard Co.'s cash conversion cycle improved from 2011 to 2012 and from 2012 to 2013.

Inventory Turnover:2013 Calculations1 Inventory turnover = Cost of sales Inventory= 86,380 6,046 = 14.29RatioDescriptionThe company

Inventory turnoverAn activity ratio calculated as cost of goods sold divided by inventory.Hewlett-Packard Co.'s inventory turnover improved from 2011 to 2012 but then slightly deteriorated from 2012 to 2013.

Receivables Turnover: 2013 Calculations1 Receivables turnover = Net revenue Accounts receivable= 112,298 15,876 = 7.07RatioDescriptionThe company

Receivables turnoverAn activity ratio equal to revenue divided by receivables.Hewlett-Packard Co.'s receivables turnover improved from 2011 to 2012 but then slightly deteriorated from 2012 to 2013 not reaching 2011 level.

Payable Turnover2013 Calculations1 Payables turnover = Cost of sales Accounts payable= 86,380 14,019 = 6.16RatioDescriptionThe company

Payables turnoverAn activity ratio calculated as cost of goods sold divided by payables.Hewlett-Packard Co.'s payables turnover increased from 2011 to 2012 but then declined significantly from 2012 to 2013.

Working Capital Turnover:2013 Calculations1 Working capital turnover = Net revenue Working capital= 112,298 4,843 = 23.19RatioDescriptionThe company

Working capital turnoverAn activity ratio calculated as revenue divided by working capital.Hewlett-Packard Co.'s working capital turnover deteriorated from 2011 to 2012 and from 2012 to 2013.

Average Inventory Turnover:2013 Calculations1 Average inventory processing period = 365 Inventory turnover= 365 14.29 = 26RatioDescriptionThe company

Average inventory processing periodAn activity ratio equal to the number of days in the period divided by inventory turnover over the period.Hewlett-Packard Co.'s average inventory processing period improved from 2011 to 2012 but then slightly deteriorated from 2012 to 2013

Average Collection:2013 Calculations1 Average receivable collection period = 365 Receivables turnover= 365 7.07 = 52RatioDescriptionThe company

Average receivable collection periodAn activity ratio equal to the number of days in the period divided by receivables turnoverd.

Operating Cycle:2013 Calculations1 Operating cycle = Average inventory processing period + Average receivable collection period= 26 + 52 = 78RatioDescriptionThe company

Operating cycleEqual to average inventory processing period plus average receivables collection period.Hewlett-Packard Co.'s operating cycle improved from 2011 to 2012 but then slightly deteriorated from 2012 to 2013 not reaching 2011 level.

Average Payables:2013 Calculations1 Average payables payment period = 365 Payables turnover= 365 6.16 = 59RatioDescriptionThe company

Average payables payment periodAn estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.Hewlett-Packard Co.'s average payables payment period declined from 2011 to 2012 but then increased from 2012 to 2013 exceeding 2011 level.

Cash Conversion Cycle:2013 Calculations1 Cash conversion cycle = Average inventory processing period + Average receivable collection period Average payables payment period= 26 + 52 59 = 19RatioDescriptionThe company

Cash conversion cycleA financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.Hewlett-Packard Co.'s cash conversion cycle improved from 2011 to 2012 and from 2012 to 2013.

RatioDescriptionThe company

Debt-to-equity ratioA solvency ratio calculated as total debt divided by total shareholders' equity.Hewlett-Packard Co.'s debt-to-equity ratio deteriorated from 2011 to 2012 but then improved from 2012 to 2013 not reaching 2011 level.

Debt-to-capital ratioA solvency ratio calculated as total debt divided by total debt plus shareholders' equity.Hewlett-Packard Co.'s debt-to-capital ratio deteriorated from 2011 to 2012 but then improved from 2012 to 2013 not reaching 2011 level.

Interest coverage ratioA solvency ratio calculated as EBIT divided by interest payments.Hewlett-Packard Co.'s interest coverage ratio deteriorated from 2011 to 2012 but then improved from 2012 to 2013 not reaching 2011 level.

Source: Based on data from Hewlett-Packard Co. Annual Reports2013 Calculations1 Debt to equity = Total debt Total HP stockholders' equity= 22,587 27,269 = 0.83RatioDescriptionThe company

Debt-to-equity ratioA solvency ratio calculated as total debt divided by total shareholders' equity.Hewlett-Packard Co.'s debt-to-equity ratio deteriorated from 2011 to 2012 but then improved from 2012 to 2013 not reaching 2011 level.

Source: Based on data from Hewlett-Packard Co. Annual Reports2013 Calculations1 Debt to capital = Total debt Total capital= 22,587 49,856 = 0.45RatioDescriptionThe company

Debt-to-capital ratioA solvency ratio calculated as total debt divided by total debt plus shareholders' equity.Hewlett-Packard Co.'s debt-to-capital ratio deteriorated from 2011 to 2012 but then improved from 2012 to 2013 not reaching 2011 level.

Source: Based on data from Hewlett-Packard Co. Annual Reports2013 Calculations1 Interest coverage = EBIT Interest expense= 7,248 738 = 9.82RatioDescriptionThe company

Interest coverage ratioA solvency ratio calculated as EBIT divided by interest payments.Hewlett-Packard Co.'s interest coverage ratio deteriorated from 2011 to 2012 but then improved from 2012 to 2013 not reaching 2011 level.


Current ratioA liquidity ratio calculated as current assets divided by current liabilities.Hewlett-Packard Co.'s current ratio improved from 2011 to 2012 and from 2012 to 2013.

Quick ratioA liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.Hewlett-Packard Co.'s quick ratio improved from 2011 to 2012 and from 2012 to 2013.

Cash ratioA liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.Hewlett-Packard Co.'s cash ratio improved from 2011 to 2012 and from 2012 to 2013.


Net fixed asset turnoverAn activity ratio calculated as total revenue divided by net fixed assets.Hewlett-Packard Co.'s net fixed asset turnover deteriorated from 2011 to 2012 and from 2012 to 2013.

Total asset turnoverAn activity ratio calculated as total revenue divided by total assets.Hewlett-Packard Co.'s total asset turnover improved from 2011 to 2012 but then slightly deteriorated from 2012 to 2013.

Equity turnoverAn activity ratio calculated as total revenue divided by shareholders' equity.Hewlett-Packard Co.'s equity turnover improved from 2011 to 2012 but then slightly deteriorated from 2012 to 2013 not reaching 2011 level.

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