HP (HPQ) FY2016 results: revenue $48.2 billion, down 6.3% on the year
HP Inc. (HPQ) reported revenue of $48.2 billion for fiscal 2016, the year ended 31 October 2016, down 6.3% on the year before. Net income was $2.5 billion, down 45.2%, and diluted earnings per share $1.43. The figures are the company's own, from the 10-K it filed with the SEC on 15 December 2016.
Revenue
$48.2 billion
-6.3% on the year
FY2009FY2016
Operating margin
7.4%
7.6% a year earlier
FY2009FY2016
Net income
$2.5 billion
-45.2% on the year
FY2009FY2016
Diluted EPS
$1.43
-42.3% on the year
FY2009FY2016
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2016
FY2015
FY2014
On the year
Last 8 years
Revenue
48,238
51,463
56,651
-6.3%
Cost of revenue
39,240
41,524
45,431
-5.5%
Gross profit
8,998
9,939
11,220
-9.5%
Gross margin
18.7%
19.3%
19.8%
Research and development
1,209
1,191
1,298
+1.5%
Selling, general and administrative
3,840
4,719
5,361
-18.6%
Operating income
3,549
3,920
4,256
-9.5%
Operating margin
7.4%
7.6%
7.5%
Interest expense
273
567
621
-51.9%
Pre-tax income
3,761
3,532
3,863
+6.5%
Income tax
1,095
-186
939
Effective tax rate
29.1%
-5.3%
24.3%
Net income
2,496
4,554
5,013
-45.2%
Net margin
5.2%
8.8%
8.8%
Diluted EPS
$1.43
$2.48
$2.62
-42.3%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2016
FY2015
FY2014
On the year
Last 8 years
Operating cash flow
3,252
7,026
12,333
-53.7%
Capital expenditure
433
3,603
3,853
-88.0%
Free cash flow
2,819
3,423
8,480
-17.6%
Free cash flow margin
5.8%
6.7%
15.0%
Cash from investing
48.0
-5,534
-2,792
Cash from financing
-14,423
808
-6,571
Depreciation and amortisation
332
4,061
4,334
-91.8%
Share-based compensation
182
709
560
-74.3%
Buybacks
1,161
2,883
2,728
-59.7%
Dividends paid
858
1,250
1,184
-31.4%
Dividend per share
$0.50
$0.67
$0.61
-25.4%
Diluted shares, weighted
1,743m
1,836m
1,912m
-5.1%
Shares outstanding at period end
1,712m
1,804m
1,839m
-5.1%
Balance sheet
$ million
FY2016
FY2015
FY2014
On the year
Last 8 years
Shareholders' equity
-3,889
27,768
26,731
Non-controlling interest
n/a
383
396
Debt
6,836
8,871
19,525
-22.9%
Other liabilities
26,063
69,860
56,554
-62.7%
Total liabilities and equity
29,010
106,882
103,206
-72.9%
Fixed assets
1,736
1,492
2,797
+16.4%
Goodwill
5,622
5,680
5,691
-1.0%
Intangible assets
n/a
2,014
2,128
Investments
55.0
n/a
n/a
Securities held for sale or to maturity
n/a
44.0
568
Cash and equivalents
6,288
17,433
15,133
-63.9%
Receivables
4,114
4,825
5,345
-14.7%
Inventory
4,484
4,288
4,531
+4.6%
Other assets
6,711
71,106
67,013
-90.6%
Total assets
29,010
106,882
103,206
-72.9%
10-K for the year ended 31 October 2016, filed 15 December 2016: the filing.