Ratings on Hewlett-Packard Co. reflect its position as a leading, global vendor of computer printers, computer systems and services, and peripherals. Revenues of $48.7 billion in fiscal 2000, ended Oct. 31, incorporate a dominant position in the laser/inkjet printer market and important positions in the personal computer and server markets. HP's historic financial performance has been very consistent, despite quarterly fluctuations in growth and profitability. Responsive control of expenses and headcount have enabled HP to maintain annual operating margins (before depreciation and amortization) of 10% or better, and return on permanent capital of 20% or better. The company is expected to maintain its conservative financial profile. Ongoing share repurchases are anticipated, funded largely with strong free operating cash flow. Cash
