Is Hewlett-Packard a Turnaround Story?

So far, this doesn’t look like a bright picture. Based on some serious competition and the current economic environment, it will be a challenge for Hewlett-Packard to continue its upward momentum. However, there is potential.

H-P seems to be making a lot of correct decisions, which include cutting costs, entering the tablet market, and cutting ties to webOS. As far as the tablet market goes, H-P’s tablet will run on Google’s (NASDAQ:GOOG) Android operating system. It will be released in April with a $169 price tag. Hewlett-Packard is obviously late to the party, but considering the brand and quality management, we could possibly see a winner.

Let’s take a look at some important numbers prior to forming an opinion on the stock.

E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio for Hewlett-Packard barely qualifies as normal. The industry average is 0.70. Hewlett-Packard’s balance sheet is in negative territory, but it’s important to know the whole story. Cash has increased from $11.3 billion, and debt has decreased slightly from $21.8 billion.

Debt-To-Equity

Cash

Long-Term Debt

HPQ

1.21

$12.59 Billion

$21.7 Billion

DELL

0.85

$12.78 Billion

$9.08 Billion

AAPL

0.00

$39.82 Billion

$0