HPQ Current Ratio Analysis

A current ratio of 0.79x means HPQ has only $0.79 in current assets—like cash and inventory—for every $1.00 of short-term debts due within a year, indicating a thin liquidity cushion.

This is well below the sector median of 1.20x, placing HPQ in the 18th percentile among its peers, meaning most competitors have stronger short-term financial flexibility. The year-over-year change is not available, but the quarter-over-quarter change shows a +3.9% improvement from the prior quarter’s 0.76x, suggesting a slight recent strengthening. Despite that uptick, the ratio remains below 1.0x, implying recurring liquidity risk; the small positive trend does not materially offset the persistently low level. This metric contradicts the overall NEUTRAL verdict because a current ratio far below the sector median and below 1.0x typically signals elevated short-term financial strain, which would normally warrant a more cautious assessment.

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