Stock Analysis on Net
Stock Analysis on Net

Hewlett Packard Enterprise Co. (NYSE:HPE)

This company has been moved to the archive! The financial data has not been updated since June 5, 2024.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Hewlett Packard Enterprise Co., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020 Oct 31, 2019 Oct 31, 2018
U.S. federal taxes — 12 26 (55) (763) (2,177)
Non-U.S. taxes 256 288 305 284 246 419
State taxes 16 (43) (4) (55) (58) 52
Current 272 257 327 174 (575) (1,706)
U.S. federal taxes (88) (98) (79) (149) 1,046 150
Non-U.S. taxes 23 (143) (116) (133) 101 (188)
State taxes (2) (8) 28 (12) (68) —
Deferred (67) (249) (167) (294) 1,079 (38)
Provision (benefit) for taxes 205 8 160 (120) 504 (1,744)

Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Hewlett Packard Enterprise Co. current decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Hewlett Packard Enterprise Co. deferred decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Provision (benefit) for taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Hewlett Packard Enterprise Co. provision (benefit) for taxes decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Effective Income Tax Rate (EITR)

Hewlett Packard Enterprise Co., effective income tax rate (EITR) reconciliation

Microsoft Excel
Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020 Oct 31, 2019 Oct 31, 2018
U.S. federal statutory income tax rate 21.00% 21.00% 21.00% 21.00% 21.00% 23.30%
State income taxes, net of federal tax benefit 0.90% 2.80% 0.70% 0.90% -0.10% 4.30%
Lower rates in other jurisdictions, net -4.40% -0.90% -7.60% 13.60% -7.30% -121.40%
Valuation allowance -2.80% -31.50% -10.00% 20.80% 5.80% -59.80%
U.S. permanent differences -1.50% 6.00% 3.60% -3.40% 6.00% 39.30%
U.S. R&D credit -2.10% -5.10% -1.30% 8.40% -2.30% -7.00%
Uncertain tax positions -2.00% -15.60% -0.90% 7.60% -14.70% -694.80%
Goodwill impairment 0.00% 21.50% 0.00% -41.20% 0.00% 0.00%
Tax law changes 0.00% 0.00% -1.10% -0.40% 24.50% 158.00%
Other, net 0.10% 2.70% 0.10% -0.20% -0.40% 7.40%
Effective tax rate 9.20% 0.90% 4.50% 27.10% 32.50% -650.70%

Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).

Item Description The company
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Hewlett Packard Enterprise Co. effective tax rate decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Components of Deferred Tax Assets and Liabilities

Hewlett Packard Enterprise Co., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020 Oct 31, 2019 Oct 31, 2018
Loss and credit carryforwards 5,802 7,222 7,526 7,596 8,110 9,149
Inventory valuation 90 87 79 75 59 77
Intercompany prepayments 325 321 308 295 179 48
Warranty 49 61 50 69 72 81
Employee and retiree benefits 184 247 287 571 584 498
Restructuring 52 55 93 118 65 101
Deferred revenue 658 601 517 565 531 518
Intangible assets 107 113 91 94 130 48
Capitalized R&D 44 — — — — —
Lease liabilities 209 185 184 166 — —
Other 196 269 259 237 284 495
Deferred tax assets 7,716 9,161 9,394 9,786 10,014 11,015
Valuation allowance (5,294) (6,817) (7,368) (7,724) (8,225) (8,209)
Deferred tax assets net of valuation allowance 2,422 2,344 2,026 2,062 1,789 2,806
Unremitted earnings of foreign subsidiaries (190) (170) (168) (172) (233) (161)
ROU assets (192) (167) (159) (165) — —
Fixed assets (102) (200) (170) (237) (352) (470)
Deferred tax liabilities (484) (537) (497) (574) (585) (631)
Net deferred tax assets and assets (liabilities) 1,938 1,807 1,529 1,488 1,204 2,175

Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Hewlett Packard Enterprise Co. deferred tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets net of valuation allowance Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Hewlett Packard Enterprise Co. deferred tax assets net of valuation allowance increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax assets and assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Hewlett Packard Enterprise Co. net deferred tax assets and assets (liabilities) increased from 2021 to 2022 and from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

Hewlett Packard Enterprise Co., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020 Oct 31, 2019 Oct 31, 2018
Deferred tax assets 2,264 2,127 2,023 1,778 1,515 2,403
Deferred tax liabilities 326 320 494 290 311 228

Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Hewlett Packard Enterprise Co. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Hewlett Packard Enterprise Co. deferred tax liabilities decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Adjustments to Financial Statements: Removal of Deferred Taxes

Hewlett Packard Enterprise Co., adjustments to financial statements

US$ in millions

Microsoft Excel
Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020 Oct 31, 2019 Oct 31, 2018
Adjustment to Total Assets
Total assets (as reported) 57,153 57,123 57,699 54,015 51,803 55,493
Less: Noncurrent deferred tax assets, net 2,264 2,127 2,023 1,778 1,515 2,403
Total assets (adjusted) 54,889 54,996 55,676 52,237 50,288 53,090
Adjustment to Total Liabilities
Total liabilities (as reported) 35,915 37,214 37,682 37,919 34,654 34,219
Less: Noncurrent deferred tax liabilities, net 326 320 494 290 311 228
Total liabilities (adjusted) 35,589 36,894 37,188 37,629 34,343 33,991
Adjustment to Total HPE Stockholders’ Equity
Total HPE stockholders’ equity (as reported) 21,182 19,864 19,971 16,049 17,098 21,239
Less: Net deferred tax assets (liabilities) 1,938 1,807 1,529 1,488 1,204 2,175
Total HPE stockholders’ equity (adjusted) 19,244 18,057 18,442 14,561 15,894 19,064
Adjustment to Net Earnings (loss) Attributable To HPE
Net earnings (loss) attributable to HPE (as reported) 2,025 868 3,427 (322) 1,049 1,908
Add: Deferred income tax expense (benefit) (67) (249) (167) (294) 1,079 (38)
Net earnings (loss) attributable to HPE (adjusted) 1,958 619 3,260 (616) 2,128 1,870

Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).

Hewlett Packard Enterprise Co., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Hewlett Packard Enterprise Co., adjusted financial ratios

Microsoft Excel
Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020 Oct 31, 2019 Oct 31, 2018
Net Profit Margin
Reported net profit margin 6.95% 3.05% 12.33% -1.19% 3.60% 6.18%
Adjusted net profit margin 6.72% 2.17% 11.73% -2.28% 7.30% 6.06%
Total Asset Turnover
Reported total asset turnover 0.51 0.50 0.48 0.50 0.56 0.56
Adjusted total asset turnover 0.53 0.52 0.50 0.52 0.58 0.58
Financial Leverage
Reported financial leverage 2.70 2.88 2.89 3.37 3.03 2.61
Adjusted financial leverage 2.85 3.05 3.02 3.59 3.16 2.78
Return on Equity (ROE)
Reported ROE 9.56% 4.37% 17.16% -2.01% 6.14% 8.98%
Adjusted ROE 10.17% 3.43% 17.68% -4.23% 13.39% 9.81%
Return on Assets (ROA)
Reported ROA 3.54% 1.52% 5.94% -0.60% 2.02% 3.44%
Adjusted ROA 3.57% 1.13% 5.86% -1.18% 4.23% 3.52%

Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Hewlett Packard Enterprise Co. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Hewlett Packard Enterprise Co. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Hewlett Packard Enterprise Co. adjusted financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Hewlett Packard Enterprise Co. adjusted ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Hewlett Packard Enterprise Co. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Hewlett Packard Enterprise Co., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020 Oct 31, 2019 Oct 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to HPE 2,025 868 3,427 (322) 1,049 1,908
Net revenue 29,135 28,496 27,784 26,982 29,135 30,852
Profitability Ratio
Net profit margin1 6.95% 3.05% 12.33% -1.19% 3.60% 6.18%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss) attributable to HPE 1,958 619 3,260 (616) 2,128 1,870
Net revenue 29,135 28,496 27,784 26,982 29,135 30,852
Profitability Ratio
Adjusted net profit margin2 6.72% 2.17% 11.73% -2.28% 7.30% 6.06%

Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).

2023 Calculations

1 Net profit margin = 100 × Net earnings (loss) attributable to HPE ÷ Net revenue
= 100 × 2,025 ÷ 29,135 = 6.95%

2 Adjusted net profit margin = 100 × Adjusted net earnings (loss) attributable to HPE ÷ Net revenue
= 100 × 1,958 ÷ 29,135 = 6.72%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Hewlett Packard Enterprise Co. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Adjusted Total Asset Turnover

Microsoft Excel
Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020 Oct 31, 2019 Oct 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net revenue 29,135 28,496 27,784 26,982 29,135 30,852
Total assets 57,153 57,123 57,699 54,015 51,803 55,493
Activity Ratio
Total asset turnover1 0.51 0.50 0.48 0.50 0.56 0.56
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net revenue 29,135 28,496 27,784 26,982 29,135 30,852
Adjusted total assets 54,889 54,996 55,676 52,237 50,288 53,090
Activity Ratio
Adjusted total asset turnover2 0.53 0.52 0.50 0.52 0.58 0.58

Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).

2023 Calculations

1 Total asset turnover = Net revenue ÷ Total assets
= 29,135 ÷ 57,153 = 0.51

2 Adjusted total asset turnover = Net revenue ÷ Adjusted total assets
= 29,135 ÷ 54,889 = 0.53

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Hewlett Packard Enterprise Co. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020 Oct 31, 2019 Oct 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets 57,153 57,123 57,699 54,015 51,803 55,493
Total HPE stockholders’ equity 21,182 19,864 19,971 16,049 17,098 21,239
Solvency Ratio
Financial leverage1 2.70 2.88 2.89 3.37 3.03 2.61
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 54,889 54,996 55,676 52,237 50,288 53,090
Adjusted total HPE stockholders’ equity 19,244 18,057 18,442 14,561 15,894 19,064
Solvency Ratio
Adjusted financial leverage2 2.85 3.05 3.02 3.59 3.16 2.78

Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Total HPE stockholders’ equity
= 57,153 ÷ 21,182 = 2.70

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total HPE stockholders’ equity
= 54,889 ÷ 19,244 = 2.85

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Hewlett Packard Enterprise Co. adjusted financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020 Oct 31, 2019 Oct 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to HPE 2,025 868 3,427 (322) 1,049 1,908
Total HPE stockholders’ equity 21,182 19,864 19,971 16,049 17,098 21,239
Profitability Ratio
ROE1 9.56% 4.37% 17.16% -2.01% 6.14% 8.98%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss) attributable to HPE 1,958 619 3,260 (616) 2,128 1,870
Adjusted total HPE stockholders’ equity 19,244 18,057 18,442 14,561 15,894 19,064
Profitability Ratio
Adjusted ROE2 10.17% 3.43% 17.68% -4.23% 13.39% 9.81%

Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).

2023 Calculations

1 ROE = 100 × Net earnings (loss) attributable to HPE ÷ Total HPE stockholders’ equity
= 100 × 2,025 ÷ 21,182 = 9.56%

2 Adjusted ROE = 100 × Adjusted net earnings (loss) attributable to HPE ÷ Adjusted total HPE stockholders’ equity
= 100 × 1,958 ÷ 19,244 = 10.17%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Hewlett Packard Enterprise Co. adjusted ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Oct 31, 2023 Oct 31, 2022 Oct 31, 2021 Oct 31, 2020 Oct 31, 2019 Oct 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to HPE 2,025 868 3,427 (322) 1,049 1,908
Total assets 57,153 57,123 57,699 54,015 51,803 55,493
Profitability Ratio
ROA1 3.54% 1.52% 5.94% -0.60% 2.02% 3.44%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss) attributable to HPE 1,958 619 3,260 (616) 2,128 1,870
Adjusted total assets 54,889 54,996 55,676 52,237 50,288 53,090
Profitability Ratio
Adjusted ROA2 3.57% 1.13% 5.86% -1.18% 4.23% 3.52%

Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).

2023 Calculations

1 ROA = 100 × Net earnings (loss) attributable to HPE ÷ Total assets
= 100 × 2,025 ÷ 57,153 = 3.54%

2 Adjusted ROA = 100 × Adjusted net earnings (loss) attributable to HPE ÷ Adjusted total assets
= 100 × 1,958 ÷ 54,889 = 3.57%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Hewlett Packard Enterprise Co. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.