Hewlett-Packard's financial analysis for the first quarter of 2012 showed declining revenue and poor performance across key financial ratios. Rapid CEO turnover and poor strategic decisions, such as competing product ranges and failed strategies compared to competitors like Apple and IBM, may have contributed to the financial issues. The conclusion was that HP is not a safe investment due to ongoing risks, but could be considered as a higher risk opportunity.

1. Hewlett-Packard
Financial analysis
First quarter 2012

2. Overview:
• Introduction
• Financial analysis
– Key figures & ratios
• Possible explanations
– CEO’s
– Stock chart
• Conclusion
• sources

3. History of Hewlett-Packard:
• Founded in 1939:
– By Bill Hewlett & Dave Packard
– In Palo Alto
• Core business (from 1966) :
– Computers

4. Financial analysis:
• Revenue
• Ratios:
– Debt / equity ratio
– Current ratio
– Quick ratio
– Interest coverage ratio

5. Revenu growth:

7. Ratios:

8. Interest coverage ratio:

9. Possible explanations:
• Fast switching of CEO’s
• Bad choices in product range
– By comparing to competitors
• Failed strategy
– By comparing to competitors

10. CEO’s:
• Mark Hurd:
– fired august 9, 2010
• Leo Apotheker:
– From: september 30, 2010
– Till: september 22, 2011
• Meg Whitman:
– From: september 22, 2011
– ongoing

11. Bad choice in Product range reflected in stock price:
compared to Apple

12. Failed strategy reflected in stock prices:
compared to IBM

13. conclusion
• Looking for safe investments?  do not invest
• Willing to take a risk?  invest

14. Thank you for watching my slidecast
Hewlett Packard: Financial analysis Q1 2012
By: Duson Joris

15. Sources:
• http://www.hp.com/
• https://www.wikinvest.com/
• http://www.nytimes.com/
• http://en.wikipedia.org/wiki/Hewlett-Packard
• http://www.informationweek.com/news/hard
ware/data_centers/231602011