Fundamental Analysis of Hewlett Packard Essay Example | Topics and Well Written Essays - 3500 words

Fundamental Analysis of Hewlett Packard - Essay Example Acknowledging the significance of the company in its relevant field, this report aims to provide a detailed analysis of the company. This report consists of two major parts. First part of this report encompasses the qualitative information about the company, which includes objective of the company, products manufactured by the company, its target market and competitive edge. The second part incorporates the financial analysis of the company, which includes evaluation of income statement, balance sheet, cash flows and ratio analysis for the past 3 years i.e. 2011, 2010, and 2009. Based upon these analyses, recommendations will be made for investors whether or not to invest in the company. For investor relations, qualitative information is equally important as quantitative information. It allows the investors to gain insights related to the objectives and prevailing operations of the company. Investors cannot take decisions just on the basis of numeric figures. The reason is that somet imes companies manipulate their numeric figures and overstate the figures of profitability. Therefore, qualitative analysis is also studied carefully in order to provide recommendation to investors. The more a company is inclined towards expansion, the more are the chances for it to provide profits to investors. Qualitative analysis of HP has been mentioned in the subsequent sections of this paper. 2.1 Objective of the Company The primary objective of the company is to serve the technology based needs of customers. The company’s major corporate objectives include: Customer Loyalty; HP earns customer loyalty and respect by consistently providing value and the best quality Growth; HP acknowledges and grabs opportunities for growth, which builds upon their competencies and strengths. Profit; the company generates sufficient profits to create value, finance growth and achieve its corporate objectives. Market Leadership; HP leads in market place by designing and delivering innovat ive and useful products, solutions and services. Commitment to Employees; HP shows commitment towards its employees by rewarding and promoting them, based on their performance and by creating an environment that reflects their values. Global Citizenship; HP claims to fulfill its responsibility to communities by being intellectual, economic and social to where they do business. Leadership Capability; The Company claims to develop leaders who achieve business results, lead to win and grow and exemplify company’s value (HP CORPORATE OBJECTIVES AND SHARED VALUES). 2.2 Products Manufactured There are huge varieties