Financial Statement Analysis of Hewlett-Packard: Performance and Financial Position Assessment
Overview
This case study analyzes the financial performance and position of Hewlett-Packard (HP) using financial ratios and SEC filings for fiscal year 2020. The analysis compares HP's financial metrics against industry benchmarks in the computer hardware manufacturing sector, evaluating asset management, liquidity, financial strength, and profitability ratios.
What this case study covers
- Company Overview: HP's business operations, headquarters, product portfolio, and market segmentation
- Industry Outlook: NAICS classification, industry characteristics, and technology innovation drivers
- Comparative Financial Analysis: Methodology using SEC EDGAR data and IBIS World Database
- Financial Results: Revenue rankings, net income, asset position, and ratio analysis across multiple dimensions
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Analysis of Financial Statement Hewlett-Packard
Student’s Name
Institutional Affiliation
Hewlett-Packard Enterprise Company commonly referred to as HP, is headquartered in Palo Alto, California. The company specializes in the manufacture of computers and related components and the design and development of software applications. HP markets its products to large, medium, small businesses and individual users. It is highly diversified across different technology market segments, offering a complete IT product portfolio, featuring everything from powerful supercomputer networks, home computers, and peripherals to digital cameras to digital entertainment and enterprise solutions and support for different sizes of businesses.
The NAICS ( North American Industry Classification System) classifies Hewlett-Packard under the US’ Computers and Peripherals Manufacturing industry. It is assigned a code of 33411, which is comparable to the SIC’s ‘Computer Peripheral Equipment (5045) classifications and the sub-industry of Standard and Poor's 'Computer Hardware. Companies' primary business in this industry is manufacturing and assembling computers, laptops, computer storage devices, workstations, and computers. According to the IBIS World Industry Report, this industry is characterized by technology innovations (Ulama, 2019).
Comparative Analysis of the Performance and Financial Position
This analysis is based on financial data filed with the US Securities and Exchange Commission through EDGAR and the IBIS World Database IBISWorld Industry Report. The relevant key financial ratios were used in this comparison. Hewlett-Packard's financial ratios were compared with those of companies in the same industry.