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.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Hewlett Packard Enterprise Co., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Apr 30, 2024 8.33% = 3.03% × 2.75
Jan 31, 2024 8.92% = 3.26% × 2.74
Oct 31, 2023 9.56% = 3.54% × 2.70
Jul 31, 2023 5.23% = 1.91% × 2.74
Apr 30, 2023 5.03% = 1.84% × 2.73
Jan 31, 2023 4.28% = 1.54% × 2.78
Oct 31, 2022 4.37% = 1.52% × 2.88
Jul 31, 2022 18.07% = 6.46% × 2.80
Apr 30, 2022 18.06% = 6.58% × 2.74
Jan 31, 2022 18.29% = 6.42% × 2.85
Oct 31, 2021 17.16% = 5.94% × 2.89
Jul 31, 2021 6.06% = 1.83% × 3.32
Apr 30, 2021 3.91% = 1.20% × 3.27
Jan 31, 2021 -2.66% = -0.81% × 3.30
Oct 31, 2020 -2.01% = -0.60% × 3.37
Jul 31, 2020 0.01% = 0.00% × 3.61
Apr 30, 2020 -0.22% = -0.06% × 3.36
Jan 31, 2020 7.01% = 2.31% × 3.04
Oct 31, 2019 6.14% = 2.02% × 3.03
Jul 31, 2019 -1.07% = -0.37% × 2.90
Apr 30, 2019 1.59% = 0.57% × 2.81
Jan 31, 2019 3.55% = 1.25% × 2.83
Oct 31, 2018 8.98% = 3.44% × 2.61
Jul 31, 2018 — = — × 2.46
Apr 30, 2018 — = — × 2.50
Jan 31, 2018 — = — × 2.57

Based on: 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-K (reporting date: 2019-10-31), 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-K (reporting date: 2018-10-31), 10-Q (reporting date: 2018-07-31), 10-Q (reporting date: 2018-04-30), 10-Q (reporting date: 2018-01-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2024 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Hewlett Packard Enterprise Co., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Apr 30, 2024 8.33% = 6.38% × 0.47 × 2.75
Jan 31, 2024 8.92% = 6.81% × 0.48 × 2.74
Oct 31, 2023 9.56% = 6.95% × 0.51 × 2.70
Jul 31, 2023 5.23% = 3.64% × 0.53 × 2.74
Apr 30, 2023 5.03% = 3.46% × 0.53 × 2.73
Jan 31, 2023 4.28% = 2.92% × 0.53 × 2.78
Oct 31, 2022 4.37% = 3.05% × 0.50 × 2.88
Jul 31, 2022 18.07% = 13.31% × 0.49 × 2.80
Apr 30, 2022 18.06% = 13.28% × 0.50 × 2.74
Jan 31, 2022 18.29% = 13.32% × 0.48 × 2.85
Oct 31, 2021 17.16% = 12.33% × 0.48 × 2.89
Jul 31, 2021 6.06% = 3.73% × 0.49 × 3.32
Apr 30, 2021 3.91% = 2.35% × 0.51 × 3.27
Jan 31, 2021 -2.66% = -1.61% × 0.50 × 3.30
Oct 31, 2020 -2.01% = -1.19% × 0.50 × 3.37
Jul 31, 2020 0.01% = 0.00% × 0.46 × 3.61
Apr 30, 2020 -0.22% = -0.13% × 0.50 × 3.36
Jan 31, 2020 7.01% = 4.22% × 0.55 × 3.04
Oct 31, 2019 6.14% = 3.60% × 0.56 × 3.03
Jul 31, 2019 -1.07% = -0.63% × 0.59 × 2.90
Apr 30, 2019 1.59% = 0.95% × 0.59 × 2.81
Jan 31, 2019 3.55% = 2.11% × 0.59 × 2.83
Oct 31, 2018 8.98% = 6.18% × 0.56 × 2.61
Jul 31, 2018 — = — × — × 2.46
Apr 30, 2018 — = — × — × 2.50
Jan 31, 2018 — = — × — × 2.57

Based on: 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-K (reporting date: 2019-10-31), 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-K (reporting date: 2018-10-31), 10-Q (reporting date: 2018-07-31), 10-Q (reporting date: 2018-04-30), 10-Q (reporting date: 2018-01-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2024 is the decrease in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

Hewlett Packard Enterprise Co., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Apr 30, 2024 3.03% = 6.38% × 0.47
Jan 31, 2024 3.26% = 6.81% × 0.48
Oct 31, 2023 3.54% = 6.95% × 0.51
Jul 31, 2023 1.91% = 3.64% × 0.53
Apr 30, 2023 1.84% = 3.46% × 0.53
Jan 31, 2023 1.54% = 2.92% × 0.53
Oct 31, 2022 1.52% = 3.05% × 0.50
Jul 31, 2022 6.46% = 13.31% × 0.49
Apr 30, 2022 6.58% = 13.28% × 0.50
Jan 31, 2022 6.42% = 13.32% × 0.48
Oct 31, 2021 5.94% = 12.33% × 0.48
Jul 31, 2021 1.83% = 3.73% × 0.49
Apr 30, 2021 1.20% = 2.35% × 0.51
Jan 31, 2021 -0.81% = -1.61% × 0.50
Oct 31, 2020 -0.60% = -1.19% × 0.50
Jul 31, 2020 0.00% = 0.00% × 0.46
Apr 30, 2020 -0.06% = -0.13% × 0.50
Jan 31, 2020 2.31% = 4.22% × 0.55
Oct 31, 2019 2.02% = 3.60% × 0.56
Jul 31, 2019 -0.37% = -0.63% × 0.59
Apr 30, 2019 0.57% = 0.95% × 0.59
Jan 31, 2019 1.25% = 2.11% × 0.59
Oct 31, 2018 3.44% = 6.18% × 0.56
Jul 31, 2018 — = — × —
Apr 30, 2018 — = — × —
Jan 31, 2018 — = — × —

Based on: 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-K (reporting date: 2019-10-31), 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-K (reporting date: 2018-10-31), 10-Q (reporting date: 2018-07-31), 10-Q (reporting date: 2018-04-30), 10-Q (reporting date: 2018-01-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q2 2024 is the decrease in profitability measured by net profit margin ratio.