onsumer electronics.
In early 1989, the company is a major designer and manu facturer of precision electronics products and systems, which are used for both measurement and computation. The company's major product categories are (1) design, measurement, and manu facturing equipment; (2) computers and computer systems; (3) electronic calculators; and (4) medical electronic equipment and instrumentation. The company's marketing effort is inter national; in 1988, 52 percent of revenues were derived from foreign sales.
Sales volume at Hewlett Packard in 1989 is projected at $12.0 billion, which will represent a 22.4 percent gain over 1988. This sales gain is consistent with the 21.5 percent recorded in 1988 over 1987. A further gain of 15.5 percent is projected for 1990. Refer to Chart 1, page 4.
Liquidity was analyzed in the context of the current ratio. Hewlett Packard's current ratio in mid 1989 was 2:1, which is significantly better than the industry norm.4
Leverage was analyzed in the context of the long term debt to equity ratio. Hewlett Packard's ratio in mid 1989was 1.1 percent, compared to an industry average of 15.1 per cent.5
Activity was analyzed in the context of revenues/equity). Hewlett Packard's ratio in mid 1989 was 2.2 times, compared toan industry average of 1.7 times.6
Company profitability was analyzed in the context ofreturn on equity (ROE), and earnings per share (EPS). Hew lett Packard's ROE in mid 1989 was 18.0 percent, compared to an industry average of 15.5 percent.7 Company EPS in mid 1989 was $3.75.8 Refer to Chart 2, page 5.
Hewlett Packard continues in the growth stage of the com pany's evolutionary life cycle. Continued new product intro ductions, together with technological innovation, has enabled the company to extend its growth stage of development.
4Calculated from data obtained from: Niemond, 1096; Nie mond, 1077.
5Calculated from data obt...