kindly find the completed work. I'll be right here just incase of anyhing. Bye for now.
This paper will focus on analyzing the financial ratios of the Hewlett-Packard Company which is
commonly referred to as the HP Company. This company is a technology corporation that split
into two separate companies in the year 2015: that is the Hewlett-Packard's computer and printer
business and the Hewlett Packard Enterprise, which is basically an enterprise-focused product and
Financial analysis is a key factor of consideration by all investors prior to investment. They are
therefore crucial for making the management decisions by the managers. Financial analysis is
basically referred to as the process of evaluating projects, businesses, budgets and other entities
related to finance as to find out their level of performance and suitability. The Quantitative
financial analysis of the business will involve the use of financial ratios so as to evaluate figures
such as sales revenue, profit margins or return on assets (ROA) so as to enhance decision making
in respect to funds within an organization. The investors of the HP company conduct, financial
and quantitative analysis before investing so as to determine whether the company is stable,
solvent, liquid or profitable enough to secure and warrant a monetary investment. It is important
to note that when looking for a specific company, a financial analyst conducts analysis by
examining the company’s balance sheet, income statement, and cash flow statement. (Brigham,
Eugene F., and Ehrhardt, 2013)
These managers and investors analyze the company’s financial data by calculating ratios from the
data and comparing them with the company’s own historical performance or against those of other
companies in the same industry. These will help in making the management decisions.
Liquidity ratios are used by the investors to measure the company’s ability to meet its short-term
maturing obligations as and when before due. The lower the ratio, the higher the liquidity risk and
vice versa. Failure to meet short-term liabilities due to lack of liquidity may lead to poor
creditworthiness, litigation by creditors and insolvency. The liquidity ratios r...