Financial Information Retrieval and Analysis of Hewlett-Packard Essay

Financial Information Retrieval and Analysis of Hewlett-Packard - Essay Example The company also offers multi-vendor customer services such as applications and business domains, technology consulting, as well as outsourcing and support service across the infrastructure. The company additionally offers IT management software, information management solutions, risk management solutions, security intelligence, application testing and delivery software, big data analytics, and a broad range of investment solutions to its customers. One of Hewlett-Packard’s main competitors in the industry is Toshiba Corporation.   Return on equity (ROE) indicates the amount of profit generated from the shareholders’ investment in Hewlett-Packard (HP). The ROE for the company was18.30% while the average return on equity for the industry was 17.50%, and that of Toshiba Corporation was 5.26%, all for the preceding year. These figures indicate that Hewlett Packard is more profitable than the other companies within the same industry. The company may be generating more profits from the shareholders’ investments in the company as compared to other companies in the same industry. The net profit margin for Hewlett-Packard is 4.68% while the industry average is 4.20%, and for Toshiba, it is 0.92% only. The profit margin for HP indicates that the company is more efficient in converting sales into profits as compared to most companies in the industry. The company’s EPS (2.62) is greater than both for the industry (0.96) and Toshiba (1.76). The EPS for HP is an indication of more favorable return on in vestments for Hewlett-Packard. The price-earnings (P/E) ratio for the company is 14.82 compared to the industry ratio which is 16.0 and for Toshiba which is 39.53. The P/E for HP is lower, thus indicating lower growth in terms of future earnings.