H-P (HPQ) is depending more than ever on receivables sales, transactions in which it sells...

|About: HP Inc. (HPQ)|By:, SA News Editor

H-P (HPQ) is depending more than ever on receivables sales, transactions in which it sells customer invoices to third parties for an up-front fee. The WSJ's Rolfe Winkler notes receivables sales totaled $4.3B in FY12, or more than half of H-P's free cash flow for the year. The transactions both have the effect of skewing cash flow figures, and of sacrificing some cash flow in exchange for eliminating customer payment risk. H-P has responded by claiming the impact of receivables sales on FY12 cash flow was negligible.