Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Hewlett Packard Enterprise Co., solvency 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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Hewlett Packard Enterprise Co. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Hewlett Packard Enterprise Co. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Hewlett Packard Enterprise Co. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Hewlett Packard Enterprise Co. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Hewlett Packard Enterprise Co. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Hewlett Packard Enterprise Co. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Hewlett Packard Enterprise Co. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Hewlett Packard Enterprise Co. interest coverage ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Hewlett Packard Enterprise Co. fixed charge coverage ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Debt to Equity
Hewlett Packard Enterprise Co., debt to equity 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) | |||||||
| Notes payable and short-term borrowings | 4,868) | 4,612) | 3,552) | 3,755) | 4,425) | 2,005) | |
| Long-term debt | 7,487) | 7,853) | 9,896) | 12,186) | 9,395) | 10,136) | |
| Total debt | 12,355) | 12,465) | 13,448) | 15,941) | 13,820) | 12,141) | |
| Total HPE stockholders’ equity | 21,182) | 19,864) | 19,971) | 16,049) | 17,098) | 21,239) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.58 | 0.63 | 0.67 | 0.99 | 0.81 | 0.57 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Apple Inc. | 1.80 | 2.39 | 1.99 | 1.73 | 1.19 | — | |
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Cisco Systems Inc. | 0.19 | 0.24 | 0.28 | 0.38 | 0.73 | — | |
| Super Micro Computer Inc. | 0.15 | 0.42 | 0.09 | 0.03 | 0.03 | 0.14 | |
| Debt to Equity, Sector | |||||||
| Technology Hardware & Equipment | 1.04 | 1.36 | 1.25 | 1.19 | 1.04 | — | |
| Debt to Equity, Industry | |||||||
| Information Technology | 0.62 | 0.67 | 0.76 | 0.87 | 0.87 | — | |
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
Debt to equity = Total debt ÷ Total HPE stockholders’ equity
= 12,355 ÷ 21,182 = 0.58
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Hewlett Packard Enterprise Co. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
Hewlett Packard Enterprise Co., debt to equity (including operating lease liability) 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) | |||||||
| Notes payable and short-term borrowings | 4,868) | 4,612) | 3,552) | 3,755) | 4,425) | 2,005) | |
| Long-term debt | 7,487) | 7,853) | 9,896) | 12,186) | 9,395) | 10,136) | |
| Total debt | 12,355) | 12,465) | 13,448) | 15,941) | 13,820) | 12,141) | |
| Current operating lease liabilities | 194) | 168) | 192) | 188) | —) | —) | |
| Non-current operating lease liabilities | 966) | 851) | 938) | 898) | —) | —) | |
| Total debt (including operating lease liability) | 13,515) | 13,484) | 14,578) | 17,027) | 13,820) | 12,141) | |
| Total HPE stockholders’ equity | 21,182) | 19,864) | 19,971) | 16,049) | 17,098) | 21,239) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 0.64 | 0.68 | 0.73 | 1.06 | 0.81 | 0.57 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Apple Inc. | 1.99 | 2.61 | 2.16 | 1.87 | 1.19 | — | |
| Arista Networks Inc. | 0.01 | 0.01 | 0.02 | 0.03 | 0.03 | — | |
| Cisco Systems Inc. | 0.21 | 0.27 | 0.31 | 0.41 | 0.73 | — | |
| Super Micro Computer Inc. | 0.16 | 0.44 | 0.11 | 0.05 | 0.03 | 0.14 | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Technology Hardware & Equipment | 1.16 | 1.49 | 1.37 | 1.28 | 1.04 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.68 | 0.73 | 0.83 | 0.94 | 0.90 | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total HPE stockholders’ equity
= 13,515 ÷ 21,182 = 0.64
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Hewlett Packard Enterprise Co. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital
Hewlett Packard Enterprise Co., debt to capital 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) | |||||||
| Notes payable and short-term borrowings | 4,868) | 4,612) | 3,552) | 3,755) | 4,425) | 2,005) | |
| Long-term debt | 7,487) | 7,853) | 9,896) | 12,186) | 9,395) | 10,136) | |
| Total debt | 12,355) | 12,465) | 13,448) | 15,941) | 13,820) | 12,141) | |
| Total HPE stockholders’ equity | 21,182) | 19,864) | 19,971) | 16,049) | 17,098) | 21,239) | |
| Total capital | 33,537) | 32,329) | 33,419) | 31,990) | 30,918) | 33,380) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.37 | 0.39 | 0.40 | 0.50 | 0.45 | 0.36 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Apple Inc. | 0.64 | 0.70 | 0.67 | 0.63 | 0.54 | — | |
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Cisco Systems Inc. | 0.16 | 0.19 | 0.22 | 0.28 | 0.42 | — | |
| Super Micro Computer Inc. | 0.13 | 0.30 | 0.08 | 0.03 | 0.02 | 0.12 | |
| Debt to Capital, Sector | |||||||
| Technology Hardware & Equipment | 0.51 | 0.58 | 0.56 | 0.54 | 0.51 | — | |
| Debt to Capital, Industry | |||||||
| Information Technology | 0.38 | 0.40 | 0.43 | 0.47 | 0.46 | — | |
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
Debt to capital = Total debt ÷ Total capital
= 12,355 ÷ 33,537 = 0.37
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Hewlett Packard Enterprise Co. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
Hewlett Packard Enterprise Co., debt to capital (including operating lease liability) 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) | |||||||
| Notes payable and short-term borrowings | 4,868) | 4,612) | 3,552) | 3,755) | 4,425) | 2,005) | |
| Long-term debt | 7,487) | 7,853) | 9,896) | 12,186) | 9,395) | 10,136) | |
| Total debt | 12,355) | 12,465) | 13,448) | 15,941) | 13,820) | 12,141) | |
| Current operating lease liabilities | 194) | 168) | 192) | 188) | —) | —) | |
| Non-current operating lease liabilities | 966) | 851) | 938) | 898) | —) | —) | |
| Total debt (including operating lease liability) | 13,515) | 13,484) | 14,578) | 17,027) | 13,820) | 12,141) | |
| Total HPE stockholders’ equity | 21,182) | 19,864) | 19,971) | 16,049) | 17,098) | 21,239) | |
| Total capital (including operating lease liability) | 34,697) | 33,348) | 34,549) | 33,076) | 30,918) | 33,380) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.39 | 0.40 | 0.42 | 0.51 | 0.45 | 0.36 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Apple Inc. | 0.67 | 0.72 | 0.68 | 0.65 | 0.54 | — | |
| Arista Networks Inc. | 0.01 | 0.01 | 0.02 | 0.03 | 0.03 | — | |
| Cisco Systems Inc. | 0.18 | 0.21 | 0.24 | 0.29 | 0.42 | — | |
| Super Micro Computer Inc. | 0.14 | 0.30 | 0.10 | 0.05 | 0.02 | 0.12 | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Technology Hardware & Equipment | 0.54 | 0.60 | 0.58 | 0.56 | 0.51 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.41 | 0.42 | 0.45 | 0.49 | 0.47 | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 13,515 ÷ 34,697 = 0.39
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Hewlett Packard Enterprise Co. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets
Hewlett Packard Enterprise Co., debt to assets 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) | |||||||
| Notes payable and short-term borrowings | 4,868) | 4,612) | 3,552) | 3,755) | 4,425) | 2,005) | |
| Long-term debt | 7,487) | 7,853) | 9,896) | 12,186) | 9,395) | 10,136) | |
| Total debt | 12,355) | 12,465) | 13,448) | 15,941) | 13,820) | 12,141) | |
| Total assets | 57,153) | 57,123) | 57,699) | 54,015) | 51,803) | 55,493) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.22 | 0.22 | 0.23 | 0.30 | 0.27 | 0.22 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Apple Inc. | 0.32 | 0.34 | 0.36 | 0.35 | 0.32 | — | |
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Cisco Systems Inc. | 0.08 | 0.10 | 0.12 | 0.15 | 0.25 | — | |
| Super Micro Computer Inc. | 0.08 | 0.19 | 0.04 | 0.02 | 0.01 | 0.07 | |
| Debt to Assets, Sector | |||||||
| Technology Hardware & Equipment | 0.26 | 0.29 | 0.30 | 0.30 | 0.30 | — | |
| Debt to Assets, Industry | |||||||
| Information Technology | 0.26 | 0.26 | 0.28 | 0.30 | 0.30 | — | |
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
Debt to assets = Total debt ÷ Total assets
= 12,355 ÷ 57,153 = 0.22
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Hewlett Packard Enterprise Co. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Hewlett Packard Enterprise Co., debt to assets (including operating lease liability) 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) | |||||||
| Notes payable and short-term borrowings | 4,868) | 4,612) | 3,552) | 3,755) | 4,425) | 2,005) | |
| Long-term debt | 7,487) | 7,853) | 9,896) | 12,186) | 9,395) | 10,136) | |
| Total debt | 12,355) | 12,465) | 13,448) | 15,941) | 13,820) | 12,141) | |
| Current operating lease liabilities | 194) | 168) | 192) | 188) | —) | —) | |
| Non-current operating lease liabilities | 966) | 851) | 938) | 898) | —) | —) | |
| Total debt (including operating lease liability) | 13,515) | 13,484) | 14,578) | 17,027) | 13,820) | 12,141) | |
| Total assets | 57,153) | 57,123) | 57,699) | 54,015) | 51,803) | 55,493) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.24 | 0.24 | 0.25 | 0.32 | 0.27 | 0.22 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Apple Inc. | 0.35 | 0.38 | 0.39 | 0.38 | 0.32 | — | |
| Arista Networks Inc. | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | — | |
| Cisco Systems Inc. | 0.09 | 0.11 | 0.13 | 0.16 | 0.25 | — | |
| Super Micro Computer Inc. | 0.08 | 0.19 | 0.05 | 0.03 | 0.01 | 0.07 | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Technology Hardware & Equipment | 0.29 | 0.31 | 0.33 | 0.32 | 0.30 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.28 | 0.29 | 0.31 | 0.33 | 0.31 | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 13,515 ÷ 57,153 = 0.24
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Hewlett Packard Enterprise Co. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Financial Leverage
Hewlett Packard Enterprise Co., financial leverage 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) | |||||||
| Total assets | 57,153) | 57,123) | 57,699) | 54,015) | 51,803) | 55,493) | |
| Total HPE stockholders’ equity | 21,182) | 19,864) | 19,971) | 16,049) | 17,098) | 21,239) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 2.70 | 2.88 | 2.89 | 3.37 | 3.03 | 2.61 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Apple Inc. | 5.67 | 6.96 | 5.56 | 4.96 | 3.74 | — | |
| Arista Networks Inc. | 1.38 | 1.39 | 1.44 | 1.43 | 1.45 | — | |
| Cisco Systems Inc. | 2.30 | 2.36 | 2.36 | 2.50 | 2.91 | — | |
| Super Micro Computer Inc. | 1.86 | 2.25 | 2.05 | 1.80 | 1.79 | 2.10 | |
| Financial Leverage, Sector | |||||||
| Technology Hardware & Equipment | 4.05 | 4.72 | 4.17 | 3.95 | 3.46 | — | |
| Financial Leverage, Industry | |||||||
| Information Technology | 2.44 | 2.56 | 2.71 | 2.90 | 2.86 | — | |
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
Financial leverage = Total assets ÷ Total HPE stockholders’ equity
= 57,153 ÷ 21,182 = 2.70
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Hewlett Packard Enterprise Co. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023. |
Interest Coverage
Hewlett Packard Enterprise Co., interest coverage 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) | |||||||
| Net earnings (loss) attributable to HPE | 2,025) | 868) | 3,427) | (322) | 1,049) | 1,908) | |
| Add: Net income attributable to noncontrolling interest | 11) | 5) | 9) | 11) | 16) | (4) | |
| Less: Net loss from discontinued operations | —) | —) | —) | —) | —) | (104) | |
| Add: Income tax expense | 205) | 8) | 160) | (120) | 504) | (1,744) | |
| Add: Interest expense | 326) | 260) | 289) | 332) | 311) | 353) | |
| Earnings before interest and tax (EBIT) | 2,567) | 1,141) | 3,885) | (99) | 1,880) | 617) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 7.87 | 4.39 | 13.44 | -0.30 | 6.05 | 1.75 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Apple Inc. | 29.92 | 41.64 | 42.29 | 24.35 | 19.38 | — | |
| Arista Networks Inc. | — | — | — | — | — | — | |
| Cisco Systems Inc. | 36.87 | 41.21 | 31.56 | 24.88 | 17.96 | — | |
| Super Micro Computer Inc. | 72.55 | 53.71 | 48.81 | 40.01 | 13.97 | 15.78 | |
| Interest Coverage, Sector | |||||||
| Technology Hardware & Equipment | 31.25 | 42.09 | 41.08 | 24.67 | 19.29 | — | |
| Interest Coverage, Industry | |||||||
| Information Technology | 18.86 | 24.65 | 23.05 | 16.83 | 15.85 | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 2,567 ÷ 326 = 7.87
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Hewlett Packard Enterprise Co. interest coverage ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Fixed Charge Coverage
Hewlett Packard Enterprise Co., fixed charge coverage 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) | |||||||
| Net earnings (loss) attributable to HPE | 2,025) | 868) | 3,427) | (322) | 1,049) | 1,908) | |
| Add: Net income attributable to noncontrolling interest | 11) | 5) | 9) | 11) | 16) | (4) | |
| Less: Net loss from discontinued operations | —) | —) | —) | —) | —) | (104) | |
| Add: Income tax expense | 205) | 8) | 160) | (120) | 504) | (1,744) | |
| Add: Interest expense | 326) | 260) | 289) | 332) | 311) | 353) | |
| Earnings before interest and tax (EBIT) | 2,567) | 1,141) | 3,885) | (99) | 1,880) | 617) | |
| Add: Operating lease cost | 200) | 197) | 207) | 236) | —) | —) | |
| Earnings before fixed charges and tax | 2,767) | 1,338) | 4,092) | 137) | 1,880) | 617) | |
| Interest expense | 326) | 260) | 289) | 332) | 311) | 353) | |
| Operating lease cost | 200) | 197) | 207) | 236) | —) | —) | |
| Fixed charges | 526) | 457) | 496) | 568) | 311) | 353) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 5.26 | 2.93 | 8.25 | 0.24 | 6.05 | 1.75 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Apple Inc. | 20.17 | 25.65 | 26.13 | 16.34 | 14.48 | — | |
| Arista Networks Inc. | 73.83 | 49.20 | 31.02 | 24.95 | 30.94 | — | |
| Cisco Systems Inc. | 18.98 | 20.30 | 16.92 | 14.79 | 12.28 | — | |
| Super Micro Computer Inc. | 40.95 | 24.03 | 12.52 | 10.45 | 7.48 | 8.28 | |
| Fixed Charge Coverage, Sector | |||||||
| Technology Hardware & Equipment | 20.34 | 25.07 | 24.67 | 16.09 | 14.08 | — | |
| Fixed Charge Coverage, Industry | |||||||
| Information Technology | 11.88 | 14.17 | 13.49 | 10.22 | 10.45 | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,767 ÷ 526 = 5.26
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Hewlett Packard Enterprise Co. fixed charge coverage ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |