Analysis of Geographic Areas
Hewlett Packard Enterprise Co. operates in 2 regions: U.S. and Other countries.
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- Income Statement
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Income Statement
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Net Profit Margin since 2015
- Price to Book Value (P/BV) since 2015
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Area Asset Turnover
Hewlett Packard Enterprise Co., asset turnover by geographic area
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | Oct 31, 2018 | |
|---|---|---|---|---|---|---|
| U.S. | ||||||
| Other countries |
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).
The analysis of the annual geographic area asset turnover ratios reveals distinct trends for the U.S. and other countries over the reported periods.
- U.S. Asset Turnover
- The U.S. asset turnover ratio shows a general decline from 3.62 in 2018 to a low of 3.11 in 2022, indicating a gradual decrease in the efficiency of asset utilization within the U.S. market over these years. However, a notable improvement occurs in 2023, where the ratio increases to 3.7, surpassing the 2018 level. This suggests a recovery or enhancement in asset use efficiency in the most recent year observed.
- Other Countries Asset Turnover
- For other countries, the ratio remains relatively stable between 6.19 and 6.94 from 2018 through 2022, showing a consistently higher turnover compared to the U.S. The peak is observed in 2022 at 6.94. In 2023, there is a significant decline to 5.89, marking the lowest point in the dataset for other countries since 2018. Despite this drop, the ratio for other countries in 2023 remains above the U.S. level.
- Comparative Insights
- Throughout the period, asset turnover ratios in other countries consistently exceed those in the U.S., indicating higher asset utilization efficiency internationally. While the U.S. shows a declining trend with a late recovery, other countries maintain higher and more stable turnover ratios until the sharp decrease in the final year. The contrasting patterns in 2023, with U.S. improving and other countries declining, may reflect shifting operational efficiencies or changes in market dynamics across regions.
Area Asset Turnover: U.S.
Hewlett Packard Enterprise Co.; U.S.; area asset turnover calculation
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | Oct 31, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | ||||||
| Property, plant and equipment, net | ||||||
| Area Activity Ratio | ||||||
| Area asset turnover1 | ||||||
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).
1 2023 Calculation
Area asset turnover = Net revenue ÷ Property, plant and equipment, net
= ÷ =
The analysis of the financial data for the U.S. geographic area over the period from October 31, 2018, to October 31, 2023, reveals several notable trends in net revenue, property, plant and equipment (PP&E), and asset turnover.
- Net Revenue
- Net revenue demonstrated a fluctuating trend over the six-year span. Starting at $10,192 million in 2018, it declined steadily through 2021, reaching its lowest point at $8,850 million. However, the trend reversed in 2022, with revenue increasing to $9,425 million and continuing to rise substantially to $10,369 million in 2023, thus surpassing the initial 2018 figure.
- Property, Plant and Equipment (net)
- The net value of property, plant, and equipment showed moderate variability with no strong directional trend. Beginning at $2,813 million in 2018, it increased slightly to $2,894 million in 2019, then decreased marginally in 2020 and 2021. The asset base expanded again in 2022 to $3,035 million but declined to $2,803 million in 2023, ending slightly below the 2018 level.
- Area Asset Turnover Ratio
- The area asset turnover ratio, which measures the efficiency of asset utilization to generate revenue, declined from 3.62 in 2018 to a low of 3.11 in 2022, indicating decreasing efficiency during this period. In 2023, the ratio improved significantly to 3.7, exceeding the starting point of 2018. This improvement aligns with the rebound in net revenue despite a smaller asset base compared to certain previous years.
Overall, the data suggest that the company experienced a period of declining revenue and asset efficiency from 2018 to 2021, followed by a recovery phase starting in 2022. The recent increase in asset turnover ratio alongside rising revenue despite a modest contraction in property and equipment assets implies enhanced operational efficiency and possibly better asset management practices in the latest year.
Area Asset Turnover: Other countries
Hewlett Packard Enterprise Co.; Other countries; area asset turnover calculation
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | Oct 31, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | ||||||
| Property, plant and equipment, net | ||||||
| Area Activity Ratio | ||||||
| Area asset turnover1 | ||||||
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).
1 2023 Calculation
Area asset turnover = Net revenue ÷ Property, plant and equipment, net
= ÷ =
- Net revenue
- The net revenue for the "Other countries" geographic area exhibited a declining trend from 2018 to 2020, falling from 20,660 million USD in 2018 to 17,820 million USD in 2020. There was a partial recovery in 2021, with revenue increasing to 18,934 million USD, followed by relative stability around 19,000 million USD in 2022 and a slight decrease to 18,766 million USD in 2023.
- Property, plant and equipment, net
- The net value of property, plant, and equipment showed a general downward trend from 2018 to 2022, decreasing from 3,325 million USD to 2,749 million USD. However, in 2023, this value increased notably to 3,186 million USD, suggesting recent investments or revaluation of asset holdings.
- Area asset turnover
- The area asset turnover ratio remained relatively stable from 2018 through 2020, fluctuating slightly around 6.2. Notable increases were observed in 2021 and 2022, reaching peak levels of 6.76 and 6.94 respectively, indicating improved efficiency in utilizing assets to generate revenue during those years. In 2023, the ratio declined to 5.89, indicating a reduction in asset utilization efficiency compared to the previous two years.
Net revenue
Hewlett Packard Enterprise Co., net revenue by geographic area
US$ in millions
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | Oct 31, 2018 | |
|---|---|---|---|---|---|---|
| U.S. | ||||||
| Other countries | ||||||
| Total |
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).
- U.S. Net Revenue
- The net revenue generated in the U.S. exhibited a declining trend from October 2018 through October 2021, decreasing from 10,192 million US dollars to 8,850 million US dollars. However, there was a reversal of this trend starting in 2022, with revenue increasing to 9,425 million US dollars and further rising in 2023 to 10,369 million US dollars. Overall, the U.S. segment shows a pattern of initial decline followed by a recovery, surpassing the 2018 level by the most recent period.
- Other Countries Net Revenue
- Revenue from other countries displayed a general downward trajectory from 20,660 million US dollars in 2018 to 17,820 million US dollars in 2020. This decline was interrupted in 2021 with a rise to 18,934 million US dollars. Revenues remained relatively stable afterward, reaching 19,071 million US dollars in 2022 and slightly decreasing to 18,766 million US dollars in 2023. The data suggests some volatility but an overall partial recovery from the lowest levels recorded in 2020.
- Total Net Revenue
- Total net revenue declined steadily from 30,852 million US dollars in 2018 to a low point of 26,982 million US dollars in 2020. A recovery phase began in 2021, with total revenue increasing to 27,784 million, followed by continued growth reaching 28,496 million in 2022 and 29,135 million in 2023. The total revenue trend mirrors the patterns observed in the regional data, indicating that the rebound is predominantly driven by improvements in the U.S. market, with other countries contributing to stabilization but showing less pronounced growth.
Property, plant and equipment, net
Hewlett Packard Enterprise Co., property, plant and equipment, net by geographic area
US$ in millions
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | Oct 31, 2018 | |
|---|---|---|---|---|---|---|
| U.S. | ||||||
| Other countries | ||||||
| Total |
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).
- U.S. Property, Plant and Equipment, Net
- Values fluctuated over the six-year period, starting at $2,813 million in 2018 and peaking at $3,035 million in 2022, before declining slightly to $2,803 million in 2023. The overall trend suggests a moderate increase with some volatility.
- Property, Plant and Equipment, Net in Other Countries
- This segment showed a declining trend from $3,325 million in 2018 to a low of $2,749 million in 2022. However, it rebounded strongly to $3,186 million in 2023, surpassing the initial value in 2018.
- Total Property, Plant and Equipment, Net
- The aggregate values demonstrated a consistent downward trend from $6,138 million in 2018 to a low of $5,613 million in 2021. Subsequently, there was a recovery with the total increasing to $5,989 million by 2023, though it did not fully return to the 2018 peak.
- Overall Observations
- The U.S. and other countries’ property, plant and equipment values exhibit divergent patterns initially, with the U.S. showing relative stability and other countries experiencing declines followed by a significant recovery. The total net property, plant and equipment reflects these dynamics, with an initial decline over the first four years, followed by a gradual increase in the last two years. These trends might indicate shifting investments or operational focus geographically over the period analyzed.