Hewlett Packard: Analysis Reveals Challenges to and Opportunities for Profitability

Abstract

This article presents analysis of Hewlett Packard (HP) for the fiscal years ending in October 2018, 2017 and 2016 with an update as of August 22, 2019. A major challenge to HP's future profitability is that total liabilities exceed total assets leaving owners' equity in a deficit. While HP has been a leader in the personal computer sector, HP has recently taken other sectors by storm.  HP has become an icon of innovation in areas such as the medical field, education, and 3D printing.  HP has taken on a new outlook for the future of HP. An example is the over 100% growth in reported net income for fiscal year ending October 2018 as compared to October 2017.An analysis of HP's income statement and balance sheet are presented to illustrate the company's progress over the time frame of 2016, 2017 and 2018.  A comparison of HP's financial status to the technology industry reveals that HP is moving in the right direction to achieve corporate goals while still maintaining financial strength and technology powerhouse status. The diversification is profitable for HP, but challenging for analysts to incorporate in developing and considering the future profitability of HP.