HP Inc. — Earnings Quality Grade F
HPQ · Technology
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 38 days, change +3 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 3.2%, CFFO -1.4%. Cash follows revenue
Expense Quality
Inventory 10.3% vs COGS 5.2%. Normal
CapEx growth 51.5% is >2x revenue growth 3.2%
SG&A/Gross Profit = 51.1%. Normal
Gross margin 20.6%, change -1.5pp. Stable
Cash Flow Quality
CFFO/NI = 1.46. Profits backed by cash
FCF $2.8B, FCF/NI = 1.11
Accruals ratio = -2.8%. Low accruals
Cash $3.7B covers only 34% of debt $10.9B
Balance Sheet Health
Goodwill+Intangibles $9.7B = -2809% of equity. Manageable
Debt/EBITDA = 2.6x. Healthy
Other assets grew 20.5% vs revenue 3.2%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -2% YoY. Normal
Manipulation Score
M-Score = -2.49 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10