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HP Annual Report, Year Ended Oct 31, 1995

Filing Date
Filed January 29, 1996
Period End
October 31, 1995
Security
HPQ
In the record · 2016–202610-K1310-Q338-K140

HPQ filed 13 annual reports (10-K), 33 quarterly reports (10-Q) and 140 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Sep ’17Sep ’17
  2. Restructuring8-K · Oct ’19Oct ’19
  3. Leadership change8-K · Nov ’21Nov ’21
  4. FY2025 annual report10-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 10-K filed January 29, 1996. Cited figures are marked; the original filing is the authoritative source.

Hewlett-Packard Company's 10-K for fiscal year ended October 31, 1995 reports strong growth: net revenue rose 26 percent to $31.5 billiona ($31,519 million), total orders increased 28 percent to $32.5 billion, and net earnings reached $2.4 billion ($2,433 million), up 52 percent from 1994.

Earnings from operations were $3,568 millionb, and net earnings per share were $4.63 after the 2-for-1 stock split effective March 24, 1995. The company cited strong demand for its printers, UNIX-based multiuser systems, HP Vectra PCs and electronic test and measurement products. Net earnings reached 7.7 percent of net revenue, the highest since 1988, and return on average shareholders' equity was 22.3 percent.

The filing also highlights rising working-capital needs. Receivables grew 34 percent against 26 percent revenue growth, and inventories rose 41 percent, so cash from operating activities fell to $1.6 billionc ($1,613 million) from $2.2 billion in 1994. Capital expenditures were $1.6 billion, net borrowings were $857 million, and total assets grew to $24.4 billion.

Research and development spending increased 14 percent to $2.3 billiond, or 7.3 percent of net revenue. The company repurchased 10.4 million shares for $686 million in 1995, and on November 17, 1995 its board authorized an additional $1 billion in repurchases.

The filing identifies risks including reliance on resellers, some of which are thinly capitalized, constrained supply of certain components, price competition that pressures gross margins, and exposure to earthquakes near key facilities. Management stated that legal proceedings were routine and that environmental costs were not material.

02—Key points

Key Highlights

  1. Total net revenue of $31.5 billion in fiscal 1995, up 26 percent; net earnings of $2.4 billion, up 52 percent.
  2. Total orders of $32.5 billion, up 28 percent, with U.S. orders at $14.6 billion and international orders at $17.9 billion.
  3. Net earnings were 7.7 percent of net revenue, the highest since 1988, and return on average shareholders' equity was 22.3 percent.
  4. Operating cash flow fell to $1.6 billion from $2.2 billion, as receivables grew 34 percent and inventories grew 41 percent.
  5. Research and development spending rose 14 percent to $2.3 billion, or 7.3 percent of net revenue.
  6. The company repurchased 10.4 million shares for $686 million in 1995, and its board authorized an additional $1 billion in repurchases on November 17, 1995.
  7. The filing states the company is the second-largest U.S.-based manufacturer of general-purpose computers, personal peripherals such as desktop printers, and calculators and other personal information products.

03—Questions

Frequently Asked Questions

  1. How did Hewlett-Packard perform financially in fiscal 1995?

    Net revenue rose 26 percent to $31,519 million and earnings from operations reached $3,568 million. Net earnings increased 52 percent to $2,433 million, or $4.63 per share, restated for the 2-for-1 stock split effective March 24, 1995.

  2. What products drove revenue growth?

    The filing attributes growth to new products and strong shipments of HP LaserJet and HP DeskJet printers, multiuser UNIX-based computer systems, HP Vectra PCs, and electronic test and measurement products, along with consumable supplies for printers. Net revenue from services grew 22 percent.

  3. Why did operating cash flow decline despite higher earnings?

    Net cash provided by operating activities fell to $1,613 million from $2,224 million, primarily because of significant growth in receivables and inventories. Receivables rose to 21.4 percent of net revenue and inventories to 19.1 percent, which the company attributed to higher revenue, orders and demand.

  4. What risks does the filing identify?

    The filing cites dependence on new product development, constrained supply of certain components, reliance on resellers some of which are thinly capitalized, continued price competition that pressures gross margins, and possible earthquake impact on facilities located near major faults.

  5. How is the company returning capital to shareholders?

    Dividends paid were $358 million in 1995. The company repurchased 10.4 million shares for $686 million, with $319 million remaining under its program at October 31, 1995, and the board authorized an additional $1 billion on November 17, 1995.

04—Continue

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