Working Capital Management - Hewlett Packard

Running Head: WORKING CAPITAL MANAGEMENT? HEWLETT-PACKARD COMPANYWorking majuscule anxiety Paper ? Hewlett-Packard CompanyLeah de RosaUniversity of PhoenixWorking Capital Management PaperHewlett Packard?s (HP) every the skinny reports for July 2007 showed their carry earnings were $20,506 one thousand thousand hence; 10% would be $2050.6 gazillion (HP.com, 2007). The first pure tone is to guardedly look at the instruction of coin Flows and verify the silver flow adequacy of this organization. though this is not the only ladder of their adequacy for this loan, this is one step in realizing how much capital they have. Though one dexterity believe the income statement would be the only information indispensable in this abridgment, this submits information about company profits, and does not provide a clear interpretation of everything the company represents and sometimes more than information is needed. Fortunately, HP has a large amount of cash listed in the terna ry quarter of their Statement of Cash Flows from their operations activities, which is $6,006 one thousand thousand. Even after facial expression at their investing and funding activities, which are $6250 million and $3706 million respectively, they were left with $12,450 million since they started with $16,400 million in the beginning of the third period (HP.com, 2007). The Statement of Cash Flows represents both cash inflows and outflows, with in operation(p) activities, including cash receipts from sell goods, or providing services.

There would be outflows including payments to purchase inventory, payment of wages, taxes , interest, utilities, rent, and quasi(pren! ominal) expenses (Albrecht, Stice, Swain, 2005). Though this demonstrates HP can impart the loan, more interrogative might find indicators behind the poesy and therefore, more analysis should be done. One thing to dispense is the liquidity which should check over if the company could pay spur its debt. Their current ratio is 0.94, though this number is low and much(prenominal) a number less(prenominal) than 2 represented liquidity problems... If you necessity to get a full essay, order it on our website: OrderCustomPaper.com

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