Analysis of Debt
Total Debt (Carrying Amount)
Hewlett Packard Enterprise Co., balance sheet: debt
US$ in millions
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).
The overall debt profile exhibits a cyclical trend characterized by a significant expansion peaking in 2020, followed by a period of steady deleveraging through 2023.
- Total Debt Trajectory
- Total short-term and long-term debt increased from 12,141 million USD in 2018 to a peak of 15,941 million USD in 2020. Following this peak, a consistent downward trend is observed, with the carrying amount receding to 12,355 million USD by October 31, 2023, effectively returning total liabilities to levels near the 2018 baseline.
- Long-term Debt Analysis
- Long-term debt experienced a sharp increase in 2020, reaching 12,186 million USD. However, this was followed by a sustained multi-year decline, falling to 7,487 million USD by 2023. This downward trajectory indicates a systematic reduction in long-term borrowing obligations over the latter half of the observed period.
- Short-term Borrowing Trends
- In contrast to long-term debt, notes payable and short-term borrowings have trended upward. Obligations grew from 2,005 million USD in 2018 to 4,868 million USD in 2023. While there were minor fluctuations between 2019 and 2021, the general trend reflects a substantial increase in short-term liquidity requirements or a shift in financing strategy.
- Debt Composition Shift
- A notable shift in the debt maturity profile is evident. In 2018, long-term debt represented the overwhelming majority of total debt. By 2023, the proportion of short-term borrowings relative to total debt increased significantly, growing from approximately 16.5% of the total debt load in 2018 to nearly 39.4% in 2023.
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Total Debt (Fair Value)
| Oct 31, 2023 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Total short-term and long-term debt (fair value) | 12,200) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.99 |
Based on: 10-K (reporting date: 2023-10-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 4.73%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 4.10% | 679) | 28) | |
| 4.60% | 167) | 8) | |
| 5.90% | 251) | 15) | |
| 5.25% | 549) | 29) | |
| 6.10% | 400) | 24) | |
| 5.90% | 1,299) | 77) | |
| 1.45% | 1,000) | 14) | |
| 1.75% | 749) | 13) | |
| 4.90% | 2,499) | 122) | |
| 6.20% | 750) | 47) | |
| 6.35% | 1,499) | 95) | |
| 6.40% | 596) | 38) | |
| 5.59% | 483) | 27) | |
| 5.55% | 393) | 22) | |
| 3.68% | 367) | 14) | |
| 1.51% | 391) | 6) | |
| 0.58% | 147) | 1) | |
| 0.49% | 102) | —) | |
| 6.30% | 215) | 14) | |
| Total | 12,536) | 593) | |
| 4.73% | |||
Based on: 10-K (reporting date: 2023-10-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 593 ÷ 12,536 = 4.73%