HP

             Hewlett-Packard Company (HP) provides IT products and solutions covering infrastructure, personal computing and access devices, imaging and printing.
             HP trades on the New York Stock Exchange (NYSE) and trades under the symbol HPQ. HP recorded revenues of $73.1 billion during fiscal year ended October 2003, an increase of 29.1% over fiscal 2002. The increase is mainly due to the acquisition of Compaq. This is considered to be "the largest merger integration in the history of our industry" (Fiorina, 2003 HP Annual Report)
             The Balance Sheet analysis will consist of three parts. I will first analyze HP's liabilities, followed by equity, and finally, assets will be discussed.
             Current Liabilities and Long Term Debt
             Hp's Current liabilities have increased over a three year period. Mainly, this is due the Compaq merger. Taking a closer look at how current liabilities are disclosed we can see that this increase is due mainly on an increase in Accounts payable and Other Accrued liabilities.
             As we can see from the following exhibit we can see a decreased in other current liability accounts.
             Current liabilities: 2003 2002 Change
             Notes payable and short-term borrowings 1,080 1,793 Decrease
             Accounts payable 9,285 7,012 Increase
             Employee compensation and benefits 1,755 2,012 Increase
             Taxes on earnings 1,599 1,529 Increase
             Deferred revenue 3,657 3,260 Increase
             Accrued restructuring 709 1,309 Decrease
             Other accrued liabilities 8,545 7,395 Increase
             Total current liabilities 26,630 24,310 Increase
             Employee compensations have been reduced by $247 million. This is because HP historically used stock options and other forms of equity-related compensation as key components of their total rewards employee compensation program in order to align employees' interests with the interests of the stockholders, encourag
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