Hewlett Packard Enterprise Co. (NYSE:HPE)

The financial data of the company over the period from 2018 to 2023 reveals notable fluctuations in both reported and investment-adjusted net earnings attributable to the company.

Reported Net Earnings (Loss) Attributable to HPE

The reported net earnings started at a high level of 1,908 million US dollars in 2018, followed by a decline to 1,049 million in 2019. In 2020, the company experienced a loss, indicated by a negative figure of -322 million. However, there was a strong recovery in 2021 where net earnings peaked significantly at 3,427 million. This was followed by a decline in 2022 to 868 million, though the figure rose again in 2023 to 2,025 million, showing volatility but an overall positive recovery trend after the 2020 loss.

Adjusted Net Earnings (Loss) Attributable to HPE

Adjusted net earnings mirrored the reported earnings closely throughout the period, starting at 1,896 million in 2018. Similar to the reported figures, adjusted earnings dropped to 1,055 million in 2019 and showed a loss of -327 million in 2020. The year 2021 recorded a significant peak of 3,424 million, followed by a decrease to 852 million in 2022. Adjusted net earnings rose again to 2,026 million in 2023. The close alignment between reported and adjusted earnings suggests that adjustments did not substantially alter the underlying net earnings trends over these years.

Overall, the earnings data indicate a period of financial instability around 2020, with a marked recovery in 2021. The subsequent two years show fluctuations but maintain earnings at a higher level than the early years in the data set. The similarity between reported and adjusted numbers suggests consistent reporting practices, with no major one-time adjustments affecting profitability in the periods reviewed.

The financial performance indicators over the reported periods exhibit notable volatility, with specific recovery patterns evident in later years.

Net Profit Margin

Both reported and adjusted net profit margins demonstrate similar trends, beginning with a moderate level around 6.18% in 2018, then declining steadily to negative territory by 2020 (-1.19% reported and -1.21% adjusted). A significant rebound is observed in 2021, with margins rising sharply to over 12%, followed by a decrease in 2022 to approximately 3%, and subsequently improving again in 2023 to nearly 7%. This pattern suggests a period of operational or market challenges around 2020, with a strong recovery phase beginning in 2021.

Return on Equity (ROE)

ROE follows a similar trajectory to the net profit margins. It starts at 8.98% reported and 8.93% adjusted in 2018, falls to negative values in 2020 (-2.01% reported, -2.04% adjusted), and then peaks impressively in 2021 at over 17%. Afterward, there is a decline in 2022 to approximately 4%, with a moderate recovery by 2023 to around 9.5%. This indicates fluctuations in profitability relative to shareholders' equity, mirroring the impacts seen in net profit margins with significant but transient challenges in 2020.

Return on Assets (ROA)

ROA exhibits a consistent pattern with the other profitability ratios, starting at roughly 3.44% in 2018, decreasing to negative in 2020 (-0.6% reported, -0.61% adjusted), then recovering markedly in 2021 to nearly 6%, followed by a drop in 2022 to around 1.5%, and an increase again in 2023 to approximately 3.5%. This indicates fluctuating efficiency in asset utilization, with a notable deterioration in 2020 and a strong, albeit not sustained, recovery following that period.

Overall, the data portrays a cyclical pattern with significant underperformance occurring around 2020, likely attributable to adverse external or internal conditions. The subsequent rebound in 2021 across all key profitability measures suggests successful strategic or operational adjustments. The slight regression in 2022 followed by improvement in 2023 points to continuing but moderate recovery momentum in generating profits and returns on equity and assets.

The data reveals fluctuations in both reported and adjusted net earnings attributable to Hewlett Packard Enterprise Co. over the period from 2018 to 2023. Beginning with strong positive earnings in 2018, there is a noticeable decline through 2019, followed by a significant loss in 2020. Subsequently, earnings recover sharply in 2021, reaching the highest values in the six-year span, before declining again in 2022 and experiencing a resurgence in 2023.

Reported Net Earnings (Loss) Attributable to HPE

Initial earnings were $1,908 million in 2018, decreasing to $1,049 million in 2019, followed by a negative $322 million in 2020. A strong recovery occurs in 2021 with earnings rising to $3,427 million, then decreasing to $868 million in 2022, and increasing again to $2,025 million in 2023.

Adjusted Net Earnings (Loss) Attributable to HPE

Adjusted earnings exhibit a similar pattern, starting at $1,896 million in 2018, declining to $1,055 million in 2019, turning negative at $327 million in 2020. This is followed by recovery to $3,424 million in 2021, a drop to $852 million in 2022, and a rise to $2,026 million in 2023.

Reported Net Profit Margin (%)

The reported net profit margin shows a downward trend from 6.18% in 2018 to 3.60% in 2019, turning negative at -1.19% in 2020. There is a sharp increase to 12.33% in 2021, followed by a decline to 3.05% in 2022, and a recovery to 6.95% in 2023.

Adjusted Net Profit Margin (%)

Adjusted net profit margin closely mirrors the reported margin, starting at 6.15% in 2018, declining to 3.62% in 2019, becoming negative at -1.21% in 2020. It peaks at 12.32% in 2021, decreases to 2.99% in 2022, and rebounds to 6.95% in 2023.

Overall, the financial data indicates volatility in earnings and profit margins over the analyzed period, with a marked downturn in 2020, followed by strong recovery in 2021. The subsequent years show inconsistent recovery, with performance in 2023 improving relative to 2022 but not surpassing the peak observed in 2021. The close alignment between reported and adjusted figures suggests limited adjustments affecting net earnings results.

Net Earnings (Reported and Adjusted)

Both reported and adjusted net earnings attributed to the company exhibit significant fluctuations over the period from 2018 to 2023. Earnings peaked notably in 2021, reaching 3,427 million US dollars (reported) and 3,424 million US dollars (adjusted), representing a strong recovery following a loss period in 2020. The year 2020 experienced a negative value with reported net loss of 322 million US dollars and adjusted net loss of 327 million US dollars. Post-2021, the company’s earnings declined in 2022, to 868 million (reported) and 852 million (adjusted), before increasing again to over 2,000 million in 2023 (2,025 million reported and 2,026 million adjusted). This pattern indicates a volatile earnings performance with a sharp downturn in 2020, followed by a robust rebound and subsequent moderate recovery.

Return on Equity (Reported and Adjusted)

The reported and adjusted Return on Equity (ROE) metrics closely mirror each other, indicating consistency between reported and adjusted figures throughout the years. ROE declined from 8.98% in 2018 to 6.14% in 2019, turning negative in 2020 at approximately -2%, which aligns with the net loss experienced that year. A substantial improvement is observed in 2021, where reported and adjusted ROE surged to about 17.16% and 17.14%, respectively, reflecting the strong earnings for that year. However, this was followed by a decline to around 4.3% in 2022, before ROE rebounded to roughly 9.56% in 2023. The trend reveals the company’s profitability and capital efficiency faced challenges during 2019-2020 but recovered significantly during 2021 and maintained moderate positive returns thereafter.

Overall Insights

The financial data indicates a period of instability, particularly in 2020, when the company recorded losses and negative returns on equity. This disruption was followed by a pronounced recovery in 2021 with exceptional earnings and ROE, suggesting effective management actions or favorable market conditions during that year. The subsequent period saw moderate volatility, with earnings and ROE decreasing in 2022 but improving again in 2023. The close alignment between reported and adjusted figures across all years suggests minimal impact of one-time items or adjustments on core performance measurements.

Net Earnings Trend

Reported net earnings attributable to the company demonstrate significant volatility over the period analyzed. Initially, earnings were strong in 2018 at 1,908 million US dollars but experienced a sharp decline in 2019 to 1,049 million. This downtrend continued into 2020, resulting in a net loss of 322 million US dollars. A robust recovery occurred in 2021 with net earnings surging to 3,427 million, followed by a moderate decline in 2022 to 868 million. The year 2023 saw another increase in earnings to 2,025 million. Adjusted net earnings closely follow the same pattern, indicating consistent reconciliation between reported and adjusted figures.

Return on Assets (ROA) Trend

Reported ROA mirrored the fluctuations observed in net earnings. The ROA started at 3.44% in 2018, dropped to a low of 2.02% in 2019, and further decreased into negative territory at -0.6% in 2020. A notable rebound in 2021 brought ROA to a peak of 5.94%. However, this was followed by a decline to 1.52% in 2022 before rising again to 3.54% in 2023. Adjusted ROA, which accounts for operational adjustments, closely aligned with reported ROA throughout the entire timeframe, confirming the reliability of operational profitability assessments.

Overall Insights

The data reveal a period of financial instability culminating in a loss in 2020, likely influenced by external or internal disruptions. Post-2020, the company demonstrated strong recovery capacity with earnings and ROA rebounding considerably in 2021. Despite subsequent fluctuations, the general upward trend in 2023 suggests stabilization and improved profitability. The minimal divergence between reported and adjusted figures throughout implies consistent financial reporting and minimal impact from extraordinary items or accounting adjustments.