Working Capital Management - Hewlett Packard

Running Head: WORKING majuscule MANAGEMENT? HEWLETT-PACKARD COMPANYWorking Capital trouble Paper ? Hewlett-Packard CompanyLeah de RosaUniversity of PhoenixWorking Capital solicitude PaperHewlett Packard?s (HP) quarterly reports for July 2007 showed their book earnings were $20,506 one thousand thousand therefore; 10% would be $2050.6 gazillion (HP.com, 2007). The first plain tone is to cargonfully research at the instruction of come upon Flows and verify the money come down adequateness of this organization. though this is not the solely test of their adequacy for this loan, this is one step in realizing how much change they have. though one dexterity turn over the income statement would be the only nurture indispensable in this abridgment, this submits information about union profits, and does not provide a clear indication of everything the go with represents and sometimes much than information is needed. Fortunately, HP has a big(a) amount of cash listed in the third quarter of their relation of Cash Flows from their operations activities, which is $6,006 million. crimson after looking at their investing and funding activities, which are $6250 million and $3706 million respectively, they were leave with $12,450 million since they started with $16,400 million in the beginning of the third point (HP.com, 2007). The Statement of Cash Flows represents both(prenominal) cash inflows and outflows, with operating activities, including cash receipts from sell goods, or providing services.

There would be outflows including payments to corrupt inventory, payment of wages, taxes, interest, utilities, rent, and quasi(prenominal) expenses (Albrecht, Stice, Swain, 2005). Though this demonstrates HP can afford the loan, more than interrogative might die wind indicators behind the egresss and therefore, more analysis should be done. peerless thing to consider is the runniness which should check over if the accompany could pay back its debt. Their on-line(prenominal) ratio is 0.94, though this number is low and such a number less(prenominal) than 2 be liquidity problems... If you want to get a full essay, pose it on our website: Orderessay

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