Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Income Statement
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Income Statement
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Net Profit Margin since 2015
- Price to Book Value (P/BV) since 2015
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Profitability Ratios (Summary)
Hewlett Packard Enterprise Co., profitability 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).
- Gross Profit Margin
- The gross profit margin demonstrates a generally upward trend from January 2019 through April 2024. Beginning near 30.12% in early 2019, it steadily increased, reaching a peak of 35.75% by January 2024 before a slight decline to 34.97% in April 2024. This pattern indicates an improvement in the company's core profitability over the observed periods, suggesting enhanced efficiency in managing production costs relative to revenue.
- Operating Profit Margin
- The operating profit margin exhibited more volatility compared to the gross profit margin. After initial growth from approximately 6% to nearly 7% in mid-2019, it experienced a notable decline by the end of 2019 and through much of 2020, reaching negative values as low as -1.69%. From early 2021 onward, the margin recovered steadily, surpassing pre-decline levels and peaking at around 7.2% in April 2024. This variability signifies fluctuating operating efficiency, with periods of operational challenges followed by a recovery phase possibly driven by restructuring, cost control, or revenue growth initiatives.
- Net Profit Margin
- The net profit margin reflects significant fluctuations, mirroring some trends of the operating margin but with larger swings. After moderate positive margins early in 2019, it dropped into negative territory in the latter part of 2019 and throughout 2020, reaching below -1.6%. Subsequently, there was a notable rebound with margins reaching a pronounced high of approximately 13.3% in early 2022, which represents a substantial increase indicating either improved cost management, one-time gains, or changes in tax or financial expenses. The margin decreased again to around 3.6% in late 2023 but showed improvement entering early 2024. These variations indicate periods of profitability challenges followed by strong recovery phases.
- Return on Equity (ROE)
- ROE displayed marked volatility aligning with trends in net profitability but with amplified movements. Starting with moderate single-digit values near 9% in early 2019, ROE fell to negative levels during late 2019 and early 2020. A strong recovery followed, peaking impressively at approximately 18.3% in mid-2022, indicating periods of highly effective shareholder value generation. However, subsequent quarters saw a downward adjustment, with ROE declining towards roughly 8.3% by April 2024. This pattern suggests swings in performance drivers such as net income and equity base changes over time.
- Return on Assets (ROA)
- The ROA followed a pattern consistent with overall profitability metrics but with less pronounced volatility, reflecting asset utilization efficiency. Initially moderate positive returns around 3.4% in early 2019 decreased to slightly negative in 2019-2020, then rose sharply to around 6.5% in mid-2022. Following this peak, ROA declined steadily to approximately 3.0% by April 2024. The trend indicates variable asset performance, with phases of underperformance followed by improvement and then a return to more moderate levels.
Return on Sales
Return on Investment
Gross Profit Margin
Hewlett Packard Enterprise Co., gross profit margin 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) | ||||||||||||||||||||||||||||||||||
| Gross profit | ||||||||||||||||||||||||||||||||||
| Net revenue | ||||||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| Gross profit margin1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Gross Profit Margin, 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
Gross profit margin = 100
× (Gross profitQ2 2024
+ Gross profitQ1 2024
+ Gross profitQ4 2023
+ Gross profitQ3 2023)
÷ (Net revenueQ2 2024
+ Net revenueQ1 2024
+ Net revenueQ4 2023
+ Net revenueQ3 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Revenue Trends
- Net revenue exhibited a fluctuating pattern over the observed periods. Initially, revenues showed moderate variability with values ranging around 7,000 to 7,900 million US dollars from early 2018 through 2019. However, a noticeable decline occurred in 2020, particularly in the April quarter, coinciding with a drop to approximately 6,000 million US dollars. Thereafter, revenue rebounded gradually through late 2020 and 2021, though it remained somewhat volatile. Entering 2022 and 2023, the net revenue experienced further fluctuations, peaking near 7,870 million US dollars in January 2023 before dipping again towards early 2024. Overall, the trend indicates sensitivity to external factors impacting revenue, with periods of contraction notably apparent in 2020.
- Gross Profit Behavior
- Gross profit mirrored overall revenue trends but demonstrated a less volatile pattern. From early 2018 through 2019, gross profit consistently ranged between about 2,300 to 2,450 million US dollars. A distinct decline was observed during 2020, with profits dropping as low as approximately 1,900 million US dollars in April 2020. Recovery took place through the remainder of 2020 and into 2021, with gross profit attaining approximately 2,400 million US dollars towards late 2021. In 2022 and onwards, gross profit fluctuated but generally remained above the lower bounds seen in 2020, indicating some recovery and stabilization. The gross profit pattern suggests resilience, with less pronounced declines relative to net revenue during downturn periods.
- Gross Profit Margin Analysis
- The gross profit margin consistently improved over the timeframe provided, starting near 30% in 2018 and increasing steadily to peak levels exceeding 35% by early 2024. This upward trend demonstrates enhanced efficiency and potentially improved cost management relative to revenue. Despite occasional revenue decreases, the margin expansion points toward successful strategies to preserve or enhance profitability on sales. The data suggests a strengthening margin environment, reflective of operational improvements or favorable product mix effects.
- Overall Insights
- The data reveals a company experiencing revenue volatility with significant impact around 2020, likely due to external market disruptions. Despite these variations in net revenue, gross profit demonstrated more stability and an increasing margin trend, indicative of effective cost control and operational efficiency improvements. The gradual margin increase over several years signifies a positive trajectory in profitability management, potentially offsetting some top-line growth challenges. The company's financial performance thus reflects adaptive operational handling in the face of fluctuating market conditions.
Operating Profit Margin
Hewlett Packard Enterprise Co., operating profit margin 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) | ||||||||||||||||||||||||||||||||||
| Earnings (loss) from operations | ||||||||||||||||||||||||||||||||||
| Net revenue | ||||||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Operating Profit Margin, 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
Operating profit margin = 100
× (Earnings (loss) from operationsQ2 2024
+ Earnings (loss) from operationsQ1 2024
+ Earnings (loss) from operationsQ4 2023
+ Earnings (loss) from operationsQ3 2023)
÷ (Net revenueQ2 2024
+ Net revenueQ1 2024
+ Net revenueQ4 2023
+ Net revenueQ3 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Operating Income Trend
- The earnings from operations experienced significant fluctuations over the analyzed periods. Starting at $261 million in January 2018, the values climbed to a peak of $684 million in October 2018. Following this peak, results declined sharply into negative territory by July 2019 (-$76 million) and April 2020 (-$834 million). From that low point, earnings recovered gradually, with occasional dips, reaching values above $500 million in early 2023 and maintaining a generally positive level thereafter, though with some volatility around the $400-500 million mark.
- Net Revenue Movement
- Net revenue displayed a downward trend initially, decreasing from approximately $7.7 billion in early 2018 to a low near $6 billion in April 2020. Post this period, revenue rebounded and stabilized in the $6.7 to $7.8 billion range through 2021 to 2023. Despite some quarter-to-quarter variability, there is no strong evidence of sustained growth beyond pre-2019 levels, indicating a recovery phase after a notable dip coinciding with operational losses.
- Operating Profit Margin Patterns
- The operating profit margin percentages are available starting mid-2018, revealing an overall upward trajectory with intermittent declines. Margins were around 6% in mid-2018, fell to slightly negative figures by mid-2020, and subsequently improved steadily. By 2023 and early 2024, margins exceeded 6%, peaking around 7.2%, signaling improved operational efficiency and profitability relative to revenues in these later periods.
- Correlation Insights
- The periods with negative earnings from operations correspond closely with quarters showing reduced net revenue and negative operating margins, especially noticeable during early 2020. The recovery in operating income aligns with improved margins and stabilized revenue, suggesting successful management of costs and operational improvements after the downturn phase.
- Summary
- The data reveals a pronounced volatility in both operational earnings and revenue, with a significant disruption occurring around early 2020 likely linked to external economic factors. Recovery efforts appear effective as indicated by improved profitability margins and return to positive operating income levels. Revenue has partially recovered but remains subject to fluctuations, while margins in the most recent periods display strengthened operational performance.
Net Profit Margin
Hewlett Packard Enterprise Co., net profit margin 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 earnings (loss) attributable to HPE | ||||||||||||||||||||||||||||||||||
| Net revenue | ||||||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Net Profit Margin, 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 profit margin = 100
× (Net earnings (loss) attributable to HPEQ2 2024
+ Net earnings (loss) attributable to HPEQ1 2024
+ Net earnings (loss) attributable to HPEQ4 2023
+ Net earnings (loss) attributable to HPEQ3 2023)
÷ (Net revenueQ2 2024
+ Net revenueQ1 2024
+ Net revenueQ4 2023
+ Net revenueQ3 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reflects notable fluctuations and trends in the quarterly performance over the analyzed periods. There are distinct variations in net earnings, revenue, and profit margin, highlighting phases of growth, decline, and recovery.
- Net Earnings (Loss) Attributable to HPE (US$ in millions)
- The net earnings display considerable volatility across the quarters. Initially, earnings peak at 1,436 million in early 2018, followed by a general decline with intermittent recoveries. Negative earnings are observed in several quarters, such as in October 2018 (-757 million) and April 2020 (-821 million), indicating periods of financial losses. From early 2021, the data reflects a more consistent positive trend, with notable spikes such as 2,553 million in January 2022. The most recent quarters show some variability but maintain positive earnings, suggesting improved profitability and operational stability compared to earlier periods.
- Net Revenue (US$ in millions)
- Revenues exhibit a cyclical pattern with a slight downward trajectory from 2018 through mid-2020, dipping from 7,674 million to 6,009 million. The subsequent quarters show recovery and stabilization around 7,000 million to 7,800 million, with occasional dips slightly below this range. While no strong upward growth trend is present, the revenue remains relatively stable in the latter periods, reflecting resilience amid fluctuating market conditions.
- Net Profit Margin (%)
- Profit margins fluctuate significantly, with positive margins appearing sporadically in the early part of the dataset. Margins turn negative in some quarters, such as late 2018 and early 2020, coinciding with net losses. From 2021 onwards, profit margins largely stabilize in the positive range, reaching peak values exceeding 13% during early 2022. The latter periods show margins moderating to a consistent range between approximately 3% to 7%, indicating better cost management and profitability maintenance.
Overall, the data reveals an initial phase of financial instability and losses, followed by gradual recovery and improved profitability starting in 2021. Revenue trends are relatively steady with minor fluctuations, while net earnings and profit margins demonstrate growing stabilization and enhanced performance in recent quarters. This suggests effectiveness in strategic or operational initiatives aimed at restoring financial health and shareholder value.
Return on Equity (ROE)
Hewlett Packard Enterprise Co., ROE 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 earnings (loss) attributable to HPE | ||||||||||||||||||||||||||||||||||
| Total HPE stockholders’ equity | ||||||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| ROE, 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
ROE = 100
× (Net earnings (loss) attributable to HPEQ2 2024
+ Net earnings (loss) attributable to HPEQ1 2024
+ Net earnings (loss) attributable to HPEQ4 2023
+ Net earnings (loss) attributable to HPEQ3 2023)
÷ Total HPE stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations in net earnings attributable to the company over the analyzed period. Initially, net earnings experienced significant variability, including substantial losses in certain quarters (e.g., October 2018 and April 2020). More recently, a recovery trend is observable, with earnings generally remaining positive and reaching a peak in January 2022. However, subsequent quarters show a decline again, with occasional negative results, indicating continued volatility in profitability.
Total stockholders’ equity demonstrates a declining trend from the beginning of the period through to early 2021, dropping from approximately $23.9 billion to around $16.0 billion. This suggests a phase of decreasing net assets or capital. Starting in 2021, however, equity begins to rebound, showing consistent growth through 2024 and reaching above $21.6 billion by April 2024. This recovery may reflect retained earnings or capital injections stabilizing and increasing the company's financial base.
The return on equity (ROE) figures, provided from January 2019 onward, mirror the earnings trend. ROE starts at moderately positive levels but turns negative during periods coinciding with losses, such as late 2018 and early 2020. From 2021 forward, ROE improves substantially, peaking dramatically in early 2022 with values exceeding 18%, indicating enhanced profitability relative to equity. Following this peak, ROE levels moderate but remain positive, suggesting ongoing operational improvement and more efficient use of equity capital.
- Net Earnings (Loss) Trends
- Highly volatile with alternating profits and losses initially; notable recovery from 2021 with earnings generally positive but showing some recent decreases.
- Total Stockholders' Equity Movements
- Steady decline through early 2021, followed by a marked recovery trend, increasing equity to levels near or above initial values by 2024.
- Return on Equity (ROE) Dynamics
- Correlation with net earnings observed; negative ROE during quarters with losses, strong positive ROE from 2021 onwards, reflecting improved profitability and equity utilization.
Return on Assets (ROA)
Hewlett Packard Enterprise Co., ROA calculation (quarterly data)
| Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | Jan 31, 2019 | Oct 31, 2018 | Jul 31, 2018 | Apr 30, 2018 | Jan 31, 2018 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Net earnings (loss) attributable to HPE | ||||||||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| ROA, 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
ROA = 100
× (Net earnings (loss) attributable to HPEQ2 2024
+ Net earnings (loss) attributable to HPEQ1 2024
+ Net earnings (loss) attributable to HPEQ4 2023
+ Net earnings (loss) attributable to HPEQ3 2023)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Earnings (Loss) Attributable to HPE
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The net earnings exhibit a high degree of volatility through the observed periods. Initial quarters show positive earnings, peaking notably at 1436 million US$ in January 2018, followed by a declining trend with intermittent losses. Specifically, losses are observed in October 2018 (-757 million US$) and April 2020 (-821 million US$). However, from early 2021 onwards, earnings show a recovery trend, with some fluctuations. Notable peaks include January 2022 (2553 million US$), indicating significant profitability, followed by moderate earnings that sustain positive territory through the most recent quarters. The last two quarters show stabilizing positive earnings around 400 to 600 million US$. Overall, the pattern reflects cyclical fluctuations with recent quarters indicating recovery and improved earnings stability.
- Total Assets
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Total assets display an overall slight upward trajectory from 61619 million US$ in January 2018 to 59711 million US$ in April 2024, despite some intermediate declines. Initially, there is a reduction from 61619 million US$ down to around 50760 million US$ by July 2019, followed by periods of incremental growth and stabilization. From early 2020 to 2024, the asset base fluctuates mostly within the 54000 to 59000 million US$ range, showing resilience and moderate recovery after prior reductions. This pattern suggests strategic management of assets maintaining overall stability, with no dramatic expansions or contractions during the period under review.
- Return on Assets (ROA)
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The ROA data, available from mid-2018 onward, reflect periods of both positive and negative returns, corresponding to the fluctuations in net earnings. Early readings show modest positive returns around 1-3%, with a dip into negative territory in late 2018 and again around early 2020, consistent with recorded net losses. From 2021 forward, ROA demonstrates a significant improvement, peaking in early 2022 with values exceeding 6%, indicating increased efficiency in asset utilization and profitability. Post-peak, the ROA stabilizes between approximately 1.5% and 3.5%, showing consistent but moderated profitability relative to total assets. The overall trend indicates a recovery from earlier losses and enhancements in asset management yielding stronger returns over recent periods.
- Insight Summary
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The financial trends combine to portray a company experiencing cycles of earnings volatility and asset readjustments over the reported periods. The improvements in ROA and net earnings since 2021 suggest successful strategic or operational changes enhancing profitability and asset efficiency. Despite previous earnings downturns, the stabilization of net earnings and a moderate increase in total assets imply a period of regained financial health and operational stability. Going forward, maintaining earnings consistency and improving asset returns appear key to sustaining positive momentum observed in recent quarters.