Hewlett Packard- Business Analysis Part 2

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Hewlett Packard- Business Analysis Part 2
Dalia Alawami MGT/521
July 09, 2012
Ms. Sandra Griffin

Hewlett Packard- Business Analysis Part 2
Introduction
In order to take a decision of investing at any company it is important to determine the financial health of that company. Thence, it is mandatory to review some financial documents such income statement, balance sheet and cash flow statement, which help to get full image about the financial condition of a firm. In this respect I have accessed financial details of Hewlett Packard to support my previous opinion of investing in that organization.

Financial Health:
According to the annual report of Hewlett Packard total revenue during 2011 was $ 127.2 billion with around 1% increase from the previous year. While there was slight decrease in the net income at the amount at about $ 1,687 billion from 2010. In 2011 the most active regions were USA, Canada and Latin America with 45% from the total revenue while the least active region was Asia-Pacific with 19% only. Personal system group achieved 31% of the total revenue, while there was lack in sales of HP software with only 3% of the total revenue. After reviewing income statement of 2011 it seems that HP has passed through up and down periods from first quarter were revenue was $ 32.3 billion then it been decreased during second and third quarter to $ 31.6 billion, to get increased again to $ 32.1 billion at the fourth quarter. In comparing to its competitors DELL and International Business Machines (IBM), HP registers the highest of revenue amount with $127.2 billion, while revenues for its competitors were $ 61,494 billion and $ 106, 916 billion for DELL and IBM respectively. However, when it comes to the net income HP comes behind IBM. Whereas, the net income of HP during 2011 is around 5.5% of the total revenue, according to Forbes the net…...

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