Analysis of Debt
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- Common-Size Balance Sheet: Assets
- Analysis of Solvency Ratios
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2015
- Operating Profit Margin since 2015
- Price to Operating Profit (P/OP) since 2015
- Analysis of Revenues
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Total Debt (Carrying Amount)
Hewlett Packard Enterprise Co., balance sheet: debt
US$ in millions
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | Oct 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Notes payable and short-term borrowings | |||||||
| Long-term debt | |||||||
| Total short-term and long-term debt (carrying amount) |
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 analysis of the debt data over the six-year period reveals several noteworthy trends and shifts in the composition and total amount of debt.
- Notes payable and short-term borrowings
- The short-term borrowings exhibit a rising trend overall. Beginning at 2,005 million USD in 2018, the balance more than doubled in 2019 to 4,425 million USD. After a decline in 2020 and 2021, dropping to 3,755 and 3,552 million USD respectively, the short-term borrowings saw an increase again in 2022 and 2023, reaching 4,612 and 4,868 million USD. This indicates fluctuating short-term borrowing needs but a general upward trajectory over the period.
- Long-term debt
- Long-term debt showed a different pattern. Starting at 10,136 million USD in 2018, it declined slightly in 2019 to 9,395 million USD, then sharply increased in 2020 to a peak of 12,186 million USD. This peak was followed by a consistent decline over the next three years, with long-term debt reducing to 9,896 million USD in 2021, 7,853 million USD in 2022, and further to 7,487 million USD in 2023. The trend suggests the company initially increased long-term borrowing significantly, then reduced it steadily afterward.
- Total short-term and long-term debt (carrying amount)
- Total debt followed a somewhat volatile pattern but showed an overall decrease in recent years. It rose from 12,141 million USD in 2018 to a peak of 15,941 million USD in 2020, driven primarily by the increase in long-term debt. Subsequently, total debt declined in 2021 to 13,448 million USD and continued to decrease in 2022 and 2023, ending at 12,355 million USD. This reduction indicates an overall deleveraging trend following the 2020 peak.
In summary, the debt profile evolved from relatively moderate short-term borrowing and stable long-term debt in 2018, to substantial long-term debt accumulation in 2020. Since then, the company has been reducing its long-term liabilities while managing short-term obligations at elevated levels compared to the initial years. The overall total debt peaked in 2020 but has been gradually decreasing, suggesting a strategic shift to lower leverage and a balanced approach to debt management in recent years.
Total Debt (Fair Value)
| Oct 31, 2023 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Total short-term and long-term debt (fair value) | |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | |
Based on: 10-K (reporting date: 2023-10-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt:
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| Total | |||
Based on: 10-K (reporting date: 2023-10-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × ÷ =