we looked at Starbucks' financial statements. Now we use Thomson ONE to analyze Hewlett Packard Co. Enter Hewlett Packard's ticker symbol (HPQ) and select "GO." Select "Financials" and "Thomson Financials" to find Hewlett Packard's key financial statements for the past several years. Click on "Worldscope" under "Financial Ratios." From here you can select annual ratios, annual average ratios, annual balance sheet ratios, annual income statement ratios, or annual cash flow ratios. Under annual ratios, there is an in-depth summary of Hewlett Packard's various ratios over the past 5 years. This information enables you to evaluate Hewlett Packard's performance over time for cach of the ratio categories mentioned in the text (liquidity, asset management, debt management, profitability, and market-based ratios). The text mentions that financial statement analysis has two major components: a trend analysis, where we evaluate changes in the key ratios over time, and a peer analysis, where we compare financial ratios with firms that are in the same industry and/or line of business. We have already used Thomson ONE to conduct a trend analysis-next, we use this tool to conduct a peer analysis. Click on "Comparables" to find some summary financial information for Hewlett Packard and a few of its peers. By clicking on the Peer Sets, you can modify the list of peer firms. The default setup is "Peers set by SIC Code." To obtain a comparison of many of the key ratios presented in the text, click on "Key Financial Ratios." Discussion Questions 1. What has happened to Hewlett Packard's liquidity position over the past 5 years? How does Hewlett Packard's liquidity compare with that of its peers? (Hint You may use both the peer key financial ratios and liquidity comparison to answer this question.) 2. Take a look at Hewlett Packard's inventory turnover ratio. How does this ratio compare with that of its peers? Have there been any interesting changes over time in this measure? Do you consider Hewlett Packard's inventory management to be a strength or a weakness? Explain. 3. Construct a DuPont analysis for Hewlett Packard and its peers. What are Hewlett Packard's strengths and weaknesses compared to those of its competitors?