Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Hewlett Packard Enterprise Co., liquidity ratios
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Hewlett Packard Enterprise Co. current ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Hewlett Packard Enterprise Co. quick ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Hewlett Packard Enterprise Co. cash ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Current Ratio
Hewlett Packard Enterprise Co., current ratio calculation, comparison to benchmarks
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | Oct 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 18,948) | 20,506) | 18,878) | 16,556) | 15,143) | 17,272) | |
| Current liabilities | 21,882) | 23,174) | 20,687) | 18,738) | 19,159) | 17,198) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 0.87 | 0.88 | 0.91 | 0.88 | 0.79 | 1.00 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Apple Inc. | 0.99 | 0.88 | 1.07 | 1.36 | 1.54 | 1.12 | |
| Arista Networks Inc. | 4.39 | 4.29 | 4.34 | 4.99 | 5.81 | — | |
| Cisco Systems Inc. | 1.38 | 1.43 | 1.49 | 1.72 | 1.51 | — | |
| Super Micro Computer Inc. | 2.31 | 1.91 | 1.93 | 2.25 | 2.35 | 1.89 | |
| Current Ratio, Sector | |||||||
| Technology Hardware & Equipment | 1.10 | 0.99 | 1.17 | 1.46 | 1.55 | — | |
| Current Ratio, Industry | |||||||
| Information Technology | 1.46 | 1.43 | 1.64 | 1.85 | 1.77 | — | |
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
Current ratio = Current assets ÷ Current liabilities
= 18,948 ÷ 21,882 = 0.87
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Hewlett Packard Enterprise Co. current ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Quick Ratio
Hewlett Packard Enterprise Co., quick ratio calculation, comparison to benchmarks
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | Oct 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 4,270) | 4,163) | 3,996) | 4,233) | 3,753) | 4,880) | |
| Accounts receivable, net of allowances | 3,481) | 4,101) | 3,979) | 3,386) | 2,957) | 3,263) | |
| Financing receivables, net of allowances | 3,543) | 3,522) | 3,932) | 3,794) | 3,572) | 3,396) | |
| Total quick assets | 11,294) | 11,786) | 11,907) | 11,413) | 10,282) | 11,539) | |
| Current liabilities | 21,882) | 23,174) | 20,687) | 18,738) | 19,159) | 17,198) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.52 | 0.51 | 0.58 | 0.61 | 0.54 | 0.67 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Apple Inc. | 0.84 | 0.71 | 0.91 | 1.22 | 1.38 | 0.99 | |
| Arista Networks Inc. | 3.16 | 3.05 | 3.54 | 4.25 | 5.22 | — | |
| Cisco Systems Inc. | 1.13 | 1.16 | 1.32 | 1.58 | 1.39 | — | |
| Super Micro Computer Inc. | 1.16 | 0.75 | 0.72 | 0.87 | 1.06 | 0.70 | |
| Quick Ratio, Sector | |||||||
| Technology Hardware & Equipment | 0.92 | 0.79 | 1.00 | 1.30 | 1.40 | — | |
| Quick Ratio, Industry | |||||||
| Information Technology | 1.17 | 1.15 | 1.38 | 1.59 | 1.54 | — | |
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
Quick ratio = Total quick assets ÷ Current liabilities
= 11,294 ÷ 21,882 = 0.52
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Hewlett Packard Enterprise Co. quick ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Cash Ratio
Hewlett Packard Enterprise Co., cash ratio calculation, comparison to benchmarks
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | Oct 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 4,270) | 4,163) | 3,996) | 4,233) | 3,753) | 4,880) | |
| Total cash assets | 4,270) | 4,163) | 3,996) | 4,233) | 3,753) | 4,880) | |
| Current liabilities | 21,882) | 23,174) | 20,687) | 18,738) | 19,159) | 17,198) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.20 | 0.18 | 0.19 | 0.23 | 0.20 | 0.28 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Apple Inc. | 0.42 | 0.31 | 0.50 | 0.86 | 0.95 | 0.57 | |
| Arista Networks Inc. | 2.62 | 2.34 | 3.07 | 3.74 | 4.56 | — | |
| Cisco Systems Inc. | 0.84 | 0.75 | 0.93 | 1.16 | 1.05 | — | |
| Super Micro Computer Inc. | 0.32 | 0.18 | 0.24 | 0.30 | 0.41 | 0.14 | |
| Cash Ratio, Sector | |||||||
| Technology Hardware & Equipment | 0.52 | 0.39 | 0.59 | 0.93 | 0.99 | — | |
| Cash Ratio, Industry | |||||||
| Information Technology | 0.75 | 0.72 | 0.96 | 1.18 | 1.10 | — | |
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
Cash ratio = Total cash assets ÷ Current liabilities
= 4,270 ÷ 21,882 = 0.20
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Hewlett Packard Enterprise Co. cash ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |