Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Capital Asset Pricing Model (CAPM)
- Debt to Equity since 2015
- Price to Earnings (P/E) since 2015
- Price to Book Value (P/BV) since 2015
- Analysis of Debt
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Long-term Activity Ratios (Summary)
Hewlett Packard Enterprise Co., long-term (investment) activity ratios (quarterly data)
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 analysis of the quarterly financial ratios for Hewlett Packard Enterprise Co. reveals several trends over the observed periods.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio is available starting from January 2019. It initially shows a slight downward trend from 5.03 to approximately 4.8 during 2019 and early 2020, followed by fluctuations around the 4.8 to 5.0 range through 2021. The ratio peaked at 5.08 in October 2021 before experiencing a gradual decline through 2023 and into early 2024, reaching a low of 4.68 in January 2024 and slightly recovering to 4.87 by April 2024. This pattern suggests relatively stable efficiency in using fixed assets to generate sales, with minor volatility and a modest decline in the most recent quarters.
- Total Asset Turnover
- The total asset turnover ratio begins reporting from January 2019. It exhibits a gradual decrease from 0.56 to 0.46 between January 2019 and October 2020, indicating reduced efficiency in utilizing total assets to generate sales. After this decline, the ratio stabilizes around the 0.5 mark through 2021 and 2022, before improving slightly to a peak of 0.53 in early 2023. However, the ratio again shows a slight decline in 2024, ending at 0.47 in April 2024. Overall, the total asset turnover displays moderate fluctuations, with a tendency toward lower efficiency in recent periods compared to early 2019.
- Equity Turnover
- Equity turnover starts from January 2019 and shows an initial increase from 1.45 to around 1.7 in late 2019, indicating improved effectiveness in generating sales from shareholders’ equity. This higher level is mostly maintained through mid-2021, followed by a notable decline to around 1.36 by late 2021 and early 2022. The ratio briefly recovers to approximately 1.47 in early 2023, but consistently decreases afterward, reaching 1.31 in April 2024. This downward trend in equity turnover during the last few years may suggest decreasing profitability relative to equity or changes in equity structure affecting sales generation capacity.
In summary, the analyzed turnover ratios reflect a company with relatively stable fixed asset utilization but facing challenges in asset and equity turnover efficiency over the observed time frame. The declining trends in total asset and equity turnover during recent quarters warrant further attention to potential underlying causes such as changes in sales volume, asset base composition, or equity financing structure.
Net Fixed Asset Turnover
Hewlett Packard Enterprise Co., net fixed asset turnover calculation (quarterly data)
| Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | Jan 31, 2019 | Oct 31, 2018 | Jul 31, 2018 | Apr 30, 2018 | Jan 31, 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Net revenue | ||||||||||||||||||||||||||||||||||
| Property, plant and equipment, net | ||||||||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Net fixed asset turnover1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||||||||
| Apple Inc. | ||||||||||||||||||||||||||||||||||
| Arista Networks Inc. | ||||||||||||||||||||||||||||||||||
| Cisco Systems Inc. | ||||||||||||||||||||||||||||||||||
| Dell Technologies Inc. | ||||||||||||||||||||||||||||||||||
| Super Micro Computer Inc. | ||||||||||||||||||||||||||||||||||
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).
1 Q2 2024 Calculation
Net fixed asset turnover
= (Net revenueQ2 2024
+ Net revenueQ1 2024
+ Net revenueQ4 2023
+ Net revenueQ3 2023)
÷ Property, plant and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Revenue
- The net revenue displayed a fluctuating trend over the observed periods. Initially, revenue showed moderate variation between approximately $7.1 billion and $7.9 billion from early 2018 through early 2020. A noticeable decline occurred in mid-2020, reaching a low point around $6 billion, likely reflecting external challenges during that time. Subsequently, revenue recovered somewhat, returning closer to previous levels with a range between roughly $6.7 billion and $7.8 billion from late 2020 through early 2023. The latest data indicates some volatility with values fluctuating between approximately $6.7 billion and $7.3 billion. Overall, net revenue shows resilience but exhibits sensitivity to market conditions or other factors affecting demand.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment remained relatively stable across the examined quarters, generally hovering in the $5.5 billion to $6.3 billion range. There was a gradual, slight downward trend observed from early 2018 levels near $6.3 billion to values closer to $5.8 billion by mid-2024. This modest decrease may indicate controlled investment or depreciation exceeding capital expenditures over time. Importantly, there is no abrupt change or significant expansion/contraction in fixed assets during the period, suggesting steady asset management without major shifts in capital intensity.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio exhibited stable performance, primarily remaining around the 4.7 to 5.1 range throughout the periods analyzed. Slight variations occurred, with a minor downward tendency in some later quarters reaching lows near 4.68, but also periods with ratios close to or slightly above 5.0, indicating efficient use of fixed assets to generate revenue. The consistency of this ratio suggests that the company maintained steady operational efficiency relative to its investment in fixed assets, with no major impairments or underutilization reported.
Total Asset Turnover
Hewlett Packard Enterprise Co., total asset turnover calculation (quarterly data)
| Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | Jan 31, 2019 | Oct 31, 2018 | Jul 31, 2018 | Apr 30, 2018 | Jan 31, 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Net revenue | ||||||||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Total asset turnover1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||||||||
| Apple Inc. | ||||||||||||||||||||||||||||||||||
| Arista Networks Inc. | ||||||||||||||||||||||||||||||||||
| Cisco Systems Inc. | ||||||||||||||||||||||||||||||||||
| Dell Technologies Inc. | ||||||||||||||||||||||||||||||||||
| Super Micro Computer Inc. | ||||||||||||||||||||||||||||||||||
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).
1 Q2 2024 Calculation
Total asset turnover
= (Net revenueQ2 2024
+ Net revenueQ1 2024
+ Net revenueQ4 2023
+ Net revenueQ3 2023)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Revenue Trends
- Net revenue shows a general fluctuating pattern across the periods analyzed. Initial values in early 2018 ranged around the 7,400 to 7,900 million USD mark, peaking in October 2018 at 7,946 million USD. Subsequently, revenue experienced a notable decline in 2020, with the lowest point observed in April 2020 at 6,009 million USD, likely influenced by external economic factors. Following this trough, revenue recovered incrementally through 2021 and 2022, reaching a peak of 7,871 million USD in October 2022. However, entering 2023 and early 2024, revenue showed some volatility, dipping again to approximately 6,755 million USD in January 2024 before ascending to 7,204 million USD by April 2024. This pattern indicates resilience with periods of contraction and recovery.
- Total Assets Analysis
- Total assets exhibited a downward trend from early 2018 to early 2020, decreasing from 61,619 million USD in January 2018 to 54,015 million USD in October 2020, demonstrating a reduction of over 7,600 million USD during this timeframe. From late 2020 onwards, assets began to stabilize and then recover steadily, climbing back to 59,711 million USD by April 2024. This recovery suggests strategic asset management or investment activities post-2020, enhancing the asset base closer to the initial levels observed in 2018.
- Total Asset Turnover Insights
- The total asset turnover ratio, available from mid-2018, typically lies between 0.46 and 0.59, indicating how efficiently the company uses its assets to generate revenue. The ratio peaked at 0.59 across several quarters in 2018 and 2019, reflecting a relatively high efficiency. However, a decline ensued in 2020, reaching a low of 0.46 in October 2020, coinciding with the period of reduced revenue and asset base contraction. In subsequent years, while the ratio fluctuated moderately, it did not return to the earlier higher levels. Values mostly hovered between 0.48 and 0.53, indicating a somewhat lower but stable asset utilization efficiency heading into 2024.
- Overall Financial Observations
- The data reveals cyclical tendencies in operational performance over the analyzed period. The period around 2020 showed a clear contraction in both revenue and asset efficiency, aligning with broader economic challenges. Recovery in revenue and assets since late 2020 suggests adaptive strategies. Nonetheless, the asset turnover ratio's failure to fully rebound to previous highs may warrant a closer look at operational efficiency and capital deployment. Continuous monitoring of these trends will be essential to maintain sustainable revenue growth and asset productivity.
Equity Turnover
Hewlett Packard Enterprise Co., equity turnover calculation (quarterly data)
| Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | Jan 31, 2019 | Oct 31, 2018 | Jul 31, 2018 | Apr 30, 2018 | Jan 31, 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Net revenue | ||||||||||||||||||||||||||||||||||
| Total HPE stockholders’ equity | ||||||||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Equity turnover1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||||||||||
| Apple Inc. | ||||||||||||||||||||||||||||||||||
| Arista Networks Inc. | ||||||||||||||||||||||||||||||||||
| Cisco Systems Inc. | ||||||||||||||||||||||||||||||||||
| Dell Technologies Inc. | ||||||||||||||||||||||||||||||||||
| Super Micro Computer Inc. | ||||||||||||||||||||||||||||||||||
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).
1 Q2 2024 Calculation
Equity turnover
= (Net revenueQ2 2024
+ Net revenueQ1 2024
+ Net revenueQ4 2023
+ Net revenueQ3 2023)
÷ Total HPE stockholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The net revenue demonstrates a pattern of fluctuations over the observed quarterly periods. Initially, the revenue hovers around the 7,500 to 8,000 million US dollar range but experiences a noticeable decline commencing around early 2020, reaching a low in the April 2020 quarter. Subsequently, the revenue recovers and fluctuates near the 7,000 million mark, with some quarters exceeding this threshold notably towards the end of 2022 and early 2023, before showing some decrease again in early 2024.
Total stockholders’ equity has shown a general downward trend from the beginning of the data set until around early 2021, declining from approximately 24,000 million USD to a low near 16,000 million USD. After this period, the equity levels exhibit a steady rise, recovering back up to over 21,600 million USD by the first quarter of 2024.
The equity turnover ratio, which provides insight into how effectively equity is being utilized to generate revenue, is only available from the third quarter of 2018 onward. Initially, the ratio increases from about 1.45 to around 1.7 by late 2019, signaling improved efficiency. However, a decline follows post-2019, with the ratio gradually dropping to about 1.31 by early 2024. This indicates a reduction in the company's efficiency in generating revenue from its equity base over this period.
- Summary of Key Observations
- The net revenue exhibits volatility with notable dips during early 2020, likely reflecting external adverse conditions, followed by partial recovery phases.
- Total stockholders’ equity decreases significantly until early 2021, suggesting possible challenges such as losses or equity reductions, before reversing to a rising trend indicating strengthening capitalization.
- The equity turnover rises initially, indicating better utilization of equity to generate sales, but later shows a consistent downward slope, which could point to less efficient capital usage amid changing market or operational conditions.