Analysis of Geographic Areas
Hewlett Packard Enterprise Co. operates in 2 regions: U.S. and Other countries.
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. | 3.70 | 3.11 | 3.15 | 3.32 | 3.31 | 3.62 |
| Other countries | 5.89 | 6.94 | 6.76 | 6.22 | 6.19 | 6.21 |
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).
An analysis of area asset turnover from 2018 to 2023 reveals a significant disparity in asset efficiency between domestic and international operations, with international markets consistently maintaining a higher turnover ratio throughout the period.
- United States Asset Turnover
- The U.S. market exhibited a general downward trajectory for the majority of the analyzed period. Starting at 3.62 in 2018, the ratio declined steadily to a low of 3.11 by October 31, 2022. However, this trend reversed sharply in 2023, with the ratio increasing to 3.70, marking the highest efficiency level recorded for the region within the six-year window.
- International Asset Turnover
- Operations in other countries demonstrated higher overall efficiency but followed a different cyclical pattern. The ratio remained relatively stable between 2018 and 2020, hovering around 6.20. A period of growth followed, peaking at 6.94 in 2022. In 2023, a notable contraction occurred, with the ratio falling to 5.89, the lowest point observed since 2019.
- Comparative Regional Performance
- A persistent gap exists between the two geographic segments. International assets generated substantially more revenue per unit of asset than U.S. assets across all reported years. While the U.S. experienced a recovery in 2023, the international segment saw a decline during the same period, suggesting a divergence in regional asset utilization or market conditions during the final fiscal year.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
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 | 10,369) | 9,425) | 8,850) | 9,162) | 9,582) | 10,192) |
| Property, plant and equipment, net | 2,803) | 3,035) | 2,811) | 2,762) | 2,894) | 2,813) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 3.70 | 3.11 | 3.15 | 3.32 | 3.31 | 3.62 |
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
= 10,369 ÷ 2,803 = 3.70
The financial performance within the U.S. geographic area exhibits a notable V-shaped recovery in revenue generation and a corresponding fluctuation in asset utilization efficiency between 2018 and 2023.
- Net Revenue Trends
- A consistent downward trajectory in net revenue was observed from 2018, when revenue stood at 10,192 million USD, reaching a period low of 8,850 million USD in 2021. This decline was reversed in 2022 and 2023, with revenue accelerating to a peak of 10,369 million USD by the end of the 2023 fiscal year.
- Property, Plant and Equipment (PPE) Analysis
- Net PPE remained relatively stable throughout the analyzed period, fluctuating between a low of 2,762 million USD in 2020 and a peak of 3,035 million USD in 2022. A reduction in these assets to 2,803 million USD occurred in 2023, coinciding with the peak in revenue.
- Area Asset Turnover Efficiency
- The area asset turnover ratio experienced a gradual decline from 3.62 in 2018 to a minimum of 3.11 in 2022. This decline reflects the period where revenue contracted while the asset base remained constant or increased. However, a significant improvement in efficiency occurred in 2023, with the ratio rising sharply to 3.70. This peak is attributed to the simultaneous increase in net revenue and the reduction of net property, plant, and equipment, indicating a more efficient use of physical assets to generate sales.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
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 | 18,766) | 19,071) | 18,934) | 17,820) | 19,553) | 20,660) |
| Property, plant and equipment, net | 3,186) | 2,749) | 2,802) | 2,863) | 3,160) | 3,325) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 5.89 | 6.94 | 6.76 | 6.22 | 6.19 | 6.21 |
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
= 18,766 ÷ 3,186 = 5.89
An analysis of the financial performance in other countries reveals a period of asset optimization followed by a recent increase in capital expenditure and a corresponding decline in asset efficiency.
- Net Revenue Trends
- Net revenue experienced volatility over the six-year period, starting at 20,660 million US dollars in 2018 and declining to a low of 17,820 million US dollars in 2020. A recovery occurred between 2021 and 2022, peaking at 19,071 million US dollars, before a slight contraction to 18,766 million US dollars was recorded in 2023.
- Property, Plant and Equipment (Net) Dynamics
- A consistent downward trend in net property, plant, and equipment was observed from 2018 through 2022, with the asset base decreasing from 3,325 million US dollars to 2,749 million US dollars. This trend reversed in 2023, as assets increased to 3,186 million US dollars, indicating a significant reinvestment in the asset base.
- Area Asset Turnover Performance
- The area asset turnover ratio remained relatively stable between 2018 and 2020, hovering around 6.2. Efficiency improved through 2021 and 2022, reaching a peak of 6.94, largely driven by the reduction in net assets relative to revenue. This improvement was reversed in 2023, as the ratio fell to 5.89, the lowest level in the period, resulting from the simultaneous occurrence of declining revenue and an expanded asset base.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
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. | 10,369) | 9,425) | 8,850) | 9,162) | 9,582) | 10,192) |
| Other countries | 18,766) | 19,071) | 18,934) | 17,820) | 19,553) | 20,660) |
| Total | 29,135) | 28,496) | 27,784) | 26,982) | 29,135) | 30,852) |
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).
Net revenue exhibited a cyclical pattern over the analyzed six-year period, characterized by a contraction phase from 2018 to 2020 and a subsequent recovery phase extending through 2023. Total revenue decreased from 30,852 million US$ in 2018 to a low of 26,982 million US$ in 2020, before steadily climbing back to 29,135 million US$ by October 31, 2023.
- U.S. Market Performance
- Revenue within the United States followed a distinct V-shaped trajectory. A consistent downward trend was observed from 2018 through 2021, with revenue falling from 10,192 million US$ to a period low of 8,850 million US$. However, this trend reversed sharply in 2022 and 2023, with the region ending the period at 10,369 million US$, surpassing its 2018 levels.
- International Market Performance
- Revenue from other countries remained the primary contributor to total net revenue but demonstrated higher volatility and a lower rate of recovery compared to the domestic market. After a peak of 20,660 million US$ in 2018, international revenue declined to 17,820 million US$ by 2020. Despite a moderate recovery that peaked at 19,071 million US$ in 2022, the region experienced a slight contraction to 18,766 million US$ in 2023.
- Geographic Revenue Distribution
- The composition of net revenue shifted over the period. While international markets historically provided the majority of revenue, the domestic U.S. market showed stronger momentum in the final two years of the analysis. This suggests a growing reliance on the U.S. market to drive overall revenue growth as international markets reached a plateau.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
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. | 2,803) | 3,035) | 2,811) | 2,762) | 2,894) | 2,813) |
| Other countries | 3,186) | 2,749) | 2,802) | 2,863) | 3,160) | 3,325) |
| Total | 5,989) | 5,784) | 5,613) | 5,625) | 6,054) | 6,138) |
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).
Total net property, plant, and equipment (PP&E) exhibited a period of moderate contraction followed by a recovery phase. From a high of $6.138 billion in 2018, total assets declined steadily to a low of $5.613 billion in 2021. Subsequently, a recovery trend emerged, with the total value rising to $5.989 billion by October 31, 2023.
- U.S. Asset Trends
- Net PP&E within the United States remained relatively stable throughout the analyzed period, fluctuating between $2.762 billion and $3.035 billion. A notable peak occurred in 2022, followed by a decrease to $2.803 billion in 2023, returning the domestic asset base to levels nearly identical to those recorded in 2018.
- International Asset Trends
- Assets located in other countries demonstrated higher volatility and a more pronounced downward trajectory from 2018 to 2022, falling from $3.325 billion to $2.749 billion. This trend was sharply reversed in 2023, with a significant increase to $3.186 billion, indicating a substantial reinvestment in international infrastructure.
- Geographic Distribution Shift
- The balance of asset distribution shifted between domestic and international markets. In 2018, international assets were the primary component of total PP&E. This shifted between 2020 and 2022, during which U.S. assets exceeded those in other countries. By 2023, the distribution reverted to the original pattern, with international assets once again representing the majority of the net PP&E portfolio.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?