Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Hewlett Packard Enterprise Co., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Hewlett Packard Enterprise Co. gross profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Hewlett Packard Enterprise Co. operating profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Hewlett Packard Enterprise Co. net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Hewlett Packard Enterprise Co. ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Hewlett Packard Enterprise Co. ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Gross Profit Margin
Hewlett Packard Enterprise Co., gross profit margin 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) | |||||||
| Gross profit | 10,239) | 9,506) | 9,376) | 8,469) | 9,493) | 9,292) | |
| Net revenue | 29,135) | 28,496) | 27,784) | 26,982) | 29,135) | 30,852) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 35.14% | 33.36% | 33.75% | 31.39% | 32.58% | 30.12% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Apple Inc. | 44.13% | 43.31% | 41.78% | 38.23% | 37.82% | 38.34% | |
| Arista Networks Inc. | 61.95% | 61.07% | 63.80% | 63.94% | 64.06% | — | |
| Cisco Systems Inc. | 62.73% | 62.55% | 64.02% | 64.26% | 62.94% | — | |
| Super Micro Computer Inc. | 18.01% | 15.40% | 15.03% | 15.76% | 14.16% | 12.80% | |
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
Gross profit margin = 100 × Gross profit ÷ Net revenue
= 100 × 10,239 ÷ 29,135 = 35.14%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Hewlett Packard Enterprise Co. gross profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Operating Profit Margin
Hewlett Packard Enterprise Co., operating profit margin 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) | |||||||
| Earnings (loss) from operations | 2,089) | 782) | 1,132) | (329) | 1,274) | 1,858) | |
| Net revenue | 29,135) | 28,496) | 27,784) | 26,982) | 29,135) | 30,852) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 7.17% | 2.74% | 4.07% | -1.22% | 4.37% | 6.02% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Apple Inc. | 29.82% | 30.29% | 29.78% | 24.15% | 24.57% | 26.69% | |
| Arista Networks Inc. | 38.52% | 34.86% | 31.37% | 30.19% | 33.42% | — | |
| Cisco Systems Inc. | 26.37% | 27.09% | 25.76% | 27.63% | 27.39% | — | |
| Super Micro Computer Inc. | 10.68% | 6.45% | 3.48% | 2.57% | 2.78% | 2.82% | |
| Operating Profit Margin, Sector | |||||||
| Technology Hardware & Equipment | 29.20% | 29.70% | 29.10% | 24.49% | 24.86% | — | |
| Operating Profit Margin, Industry | |||||||
| Information Technology | 26.21% | 28.31% | 28.72% | 24.93% | 25.33% | — | |
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
Operating profit margin = 100 × Earnings (loss) from operations ÷ Net revenue
= 100 × 2,089 ÷ 29,135 = 7.17%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Hewlett Packard Enterprise Co. operating profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Net Profit Margin
Hewlett Packard Enterprise Co., net profit margin 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) | |
| Net revenue | 29,135) | 28,496) | 27,784) | 26,982) | 29,135) | 30,852) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 6.95% | 3.05% | 12.33% | -1.19% | 3.60% | 6.18% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Apple Inc. | 25.31% | 25.31% | 25.88% | 20.91% | 21.24% | 22.41% | |
| Arista Networks Inc. | 35.62% | 30.87% | 28.52% | 27.38% | 35.67% | — | |
| Cisco Systems Inc. | 22.13% | 22.91% | 21.26% | 22.75% | 22.39% | — | |
| Super Micro Computer Inc. | 8.98% | 5.49% | 3.14% | 2.52% | 2.05% | 1.37% | |
| Net Profit Margin, Sector | |||||||
| Technology Hardware & Equipment | 24.78% | 24.87% | 25.16% | 21.05% | 21.32% | — | |
| Net Profit Margin, Industry | |||||||
| Information Technology | 22.04% | 23.93% | 25.58% | 21.38% | 22.17% | — | |
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
Net profit margin = 100 × Net earnings (loss) attributable to HPE ÷ Net revenue
= 100 × 2,025 ÷ 29,135 = 6.95%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Hewlett Packard Enterprise Co. net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Return on Equity (ROE)
Hewlett Packard Enterprise Co., ROE 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) | |
| Total HPE stockholders’ equity | 21,182) | 19,864) | 19,971) | 16,049) | 17,098) | 21,239) | |
| Profitability Ratio | |||||||
| ROE1 | 9.56% | 4.37% | 17.16% | -2.01% | 6.14% | 8.98% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Apple Inc. | 156.08% | 196.96% | 150.07% | 87.87% | 61.06% | 55.56% | |
| Arista Networks Inc. | 28.91% | 27.68% | 21.13% | 19.11% | 29.71% | — | |
| Cisco Systems Inc. | 28.44% | 29.70% | 25.66% | 29.57% | 34.62% | — | |
| Super Micro Computer Inc. | 32.45% | 20.00% | 10.20% | 7.91% | 7.64% | 5.47% | |
| ROE, Sector | |||||||
| Technology Hardware & Equipment | 97.10% | 117.05% | 97.06% | 64.42% | 53.02% | — | |
| ROE, Industry | |||||||
| Information Technology | 31.78% | 38.36% | 42.36% | 35.12% | 36.53% | — | |
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
ROE = 100 × Net earnings (loss) attributable to HPE ÷ Total HPE stockholders’ equity
= 100 × 2,025 ÷ 21,182 = 9.56%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Hewlett Packard Enterprise Co. ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Return on Assets (ROA)
Hewlett Packard Enterprise Co., ROA 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) | |
| Total assets | 57,153) | 57,123) | 57,699) | 54,015) | 51,803) | 55,493) | |
| Profitability Ratio | |||||||
| ROA1 | 3.54% | 1.52% | 5.94% | -0.60% | 2.02% | 3.44% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Apple Inc. | 27.51% | 28.29% | 26.97% | 17.73% | 16.32% | 16.28% | |
| Arista Networks Inc. | 20.98% | 19.96% | 14.66% | 13.39% | 20.54% | — | |
| Cisco Systems Inc. | 12.38% | 12.57% | 10.86% | 11.82% | 11.88% | — | |
| Super Micro Computer Inc. | 17.42% | 8.90% | 4.99% | 4.39% | 4.27% | 2.61% | |
| ROA, Sector | |||||||
| Technology Hardware & Equipment | 24.00% | 24.80% | 23.27% | 16.30% | 15.34% | — | |
| ROA, Industry | |||||||
| Information Technology | 13.01% | 14.99% | 15.62% | 12.12% | 12.78% | — | |
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
ROA = 100 × Net earnings (loss) attributable to HPE ÷ Total assets
= 100 × 2,025 ÷ 57,153 = 3.54%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Hewlett Packard Enterprise Co. ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |