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Hewlett Packard Enterprise Co. (NYSE:HPE)

This company has been moved to the archive! The financial data has not been updated since June 5, 2024.

Common-Size Income Statement
Quarterly Data

Hewlett Packard Enterprise Co., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: 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
Products 60.02 58.56 61.39 60.43 60.83 65.49 66.03 62.06 60.18 60.95 63.18 61.33 59.66 60.56 62.49 61.52 55.25 61.12 61.83 62.46 61.68 63.43 64.06 63.68 61.73 63.33
Services 37.73 39.13 36.54 37.55 37.30 32.94 32.47 36.20 38.00 37.29 35.15 36.86 38.49 37.66 35.77 36.80 42.84 37.26 36.56 35.96 36.70 35.09 34.50 34.92 36.77 35.22
Financing income 2.25 2.31 2.07 2.03 1.86 1.58 1.50 1.74 1.82 1.75 1.67 1.81 1.85 1.79 1.75 1.69 1.91 1.63 1.61 1.58 1.62 1.48 1.45 1.40 1.50 1.45
Net revenue 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of products -41.88 -37.65 -41.03 -39.19 -39.27 -44.31 -46.33 -42.67 -42.22 -43.33 -45.21 -42.16 -41.33 -42.29 -46.09 -45.31 -39.57 -41.88 -42.09 -42.52 -42.77 -44.60 -45.95 -45.27 -44.46 -46.82
Cost of services -23.43 -24.22 -22.62 -23.51 -23.42 -20.66 -19.93 -22.08 -23.21 -22.34 -21.24 -22.56 -23.73 -23.36 -22.45 -23.42 -27.39 -24.23 -23.70 -22.52 -23.94 -23.37 -22.24 -23.18 -24.18 -23.85
Financing cost -1.71 -1.76 -1.54 -1.46 -1.29 -1.00 -0.79 -0.78 -2.20 -0.66 -0.65 -0.74 -0.81 -0.86 -0.86 -0.95 -1.18 -1.05 -1.04 -1.03 -1.05 -0.97 -0.89 -0.89 -0.94 -0.89
Cost of revenue -67.02% -63.63% -65.19% -64.15% -63.98% -65.96% -67.06% -65.53% -67.63% -66.33% -67.11% -65.46% -65.87% -66.52% -69.40% -69.67% -68.15% -67.16% -66.83% -66.07% -67.76% -68.94% -69.08% -69.35% -69.58% -71.55%
Gross profit 32.98% 36.37% 34.81% 35.85% 36.02% 34.04% 32.94% 34.47% 32.37% 33.67% 32.89% 34.54% 34.13% 33.48% 30.60% 30.33% 31.85% 32.84% 33.17% 33.93% 32.24% 31.06% 30.92% 30.65% 30.42% 28.45%
Research and development -8.19 -8.62 -7.86 -8.25 -8.17 -7.98 -6.54 -7.32 -7.70 -7.24 -6.83 -7.34 -7.51 -6.85 -6.71 -6.68 -7.49 -6.98 -6.07 -6.66 -6.39 -6.17 -5.52 -5.59 -5.38 -5.06
Selling, general and administrative -16.87 -18.00 -18.12 -18.59 -18.20 -16.10 -16.03 -17.68 -18.61 -17.25 -17.41 -18.72 -17.90 -16.96 -16.18 -16.59 -18.46 -17.53 -17.03 -17.36 -16.98 -16.03 -15.34 -15.49 -16.43 -15.66
Amortization of intangible assets -0.93 -1.05 -0.98 -1.03 -1.02 -0.93 -0.93 -1.05 -1.10 -1.05 -1.06 -1.19 -1.25 -1.61 -1.11 -1.39 -1.40 -1.73 -0.94 -0.80 -0.97 -0.95 -0.91 -0.93 -0.96 -1.02
Impairment of goodwill 0.00 0.00 0.00 0.00 0.00 0.00 -11.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -14.40 0.00 0.00 0.00 0.00 0.00 -1.11 0.00 0.00 0.00
Restructuring charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.06 -0.03 -0.12 -0.04
Transformation costs -0.46 -0.30 -0.76 -0.93 -0.86 -1.31 -2.34 -1.15 -1.46 -1.59 -2.68 -3.09 -3.12 -4.55 -4.22 -5.24 -3.33 -1.28 -2.09 -2.36 -0.76 -1.03 0.93 -1.69 -1.65 -3.19
Disaster (charges) recoveries 0.00 0.00 0.05 -0.01 -0.04 -0.01 0.01 -0.43 -0.30 0.01 -0.14 -0.07 -0.01 0.00 -0.03 -0.03 -0.37 0.00 0.00 0.00 0.10 0.00 0.00 0.00 0.00 0.00
Acquisition, disposition and other related charges -0.64 -0.64 -0.24 -0.30 -0.27 -0.14 0.08 -0.13 -0.12 -0.11 -0.03 -0.04 -0.19 -0.26 -0.35 -0.22 -0.30 -0.32 -0.65 -7.80 -1.17 -0.83 -0.15 -0.31 -0.21 -0.39
Separation costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.15 0.03 -0.35 0.31
Earnings (loss) from operations 5.90% 7.77% 6.90% 6.73% 7.46% 7.57% -4.31% 6.70% 3.08% 6.44% 4.76% 4.09% 4.15% 3.25% 2.01% 0.18% -13.88% 5.01% 6.38% -1.05% 6.07% 6.04% 8.61% 6.65% 5.32% 3.40%
Interest and other, net -0.31 -1.30 -0.37 -0.71 -0.77 -0.32 -1.38 -1.06 0.00 -0.07 -1.44 -0.72 -0.16 -0.64 -0.79 -1.04 -1.13 -0.27 -0.53 -0.97 -0.25 -0.68 -1.40 -0.82 -1.04 -0.27
Tax indemnification and other adjustments 0.00 0.00 0.07 0.64 0.09 -0.01 -0.25 -0.43 0.00 -0.24 0.07 1.10 0.00 -0.23 -0.21 -0.44 -0.58 -0.30 3.99 -1.86 0.06 2.90 -0.15 0.03 -5.69 -11.98
Non-service net periodic benefit credit (cost) 0.00 0.00 -0.01 -0.04 0.01 0.00 0.36 0.49 0.54 0.52 0.23 0.28 0.25 0.25 0.49 0.41 0.60 0.53 0.19 0.17 0.24 0.21 0.00 0.00 0.00 0.00
Litigation judgment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 31.97 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Earnings (loss) from equity interests 0.58 0.68 0.88 1.04 0.70 0.74 1.05 0.98 0.49 0.45 0.97 1.15 0.06 0.38 0.24 0.40 -0.17 0.47 -0.01 0.04 0.04 0.20 0.19 0.14 -0.13 0.29
Earnings (loss) before (provision) benefit for taxes 6.18% 7.15% 7.47% 7.65% 7.49% 7.98% -4.54% 6.68% 4.11% 7.08% 36.55% 5.89% 4.30% 3.00% 1.73% -0.50% -15.16% 5.44% 10.02% -3.67% 6.15% 8.67% 7.25% 5.99% -1.55% -8.56%
(Provision) benefit for taxes -1.82 -1.42 1.27 -1.03 -1.49 -1.56 0.67 -0.79 -0.39 0.29 -1.84 -0.20 -0.43 0.26 0.44 0.63 1.50 -0.65 -3.37 3.30 -0.29 -6.33 -16.96 -0.17 12.94 27.87
Net earnings (loss) from continuing operations 4.36% 5.73% 8.73% 6.63% 5.99% 6.42% -3.86% 5.88% 3.72% 7.37% 34.72% 5.68% 3.87% 3.26% 2.18% 0.13% -13.66% 4.79% 6.65% -0.37% 5.86% 2.34% -9.72% 5.82% 11.38% 19.31%
Net loss from discontinued operations 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.19 -0.01 -0.96 -0.60
Net earnings (loss) attributable to HPE 4.36% 5.73% 8.73% 6.63% 5.99% 6.42% -3.86% 5.88% 3.72% 7.37% 34.72% 5.68% 3.87% 3.26% 2.18% 0.13% -13.66% 4.79% 6.65% -0.37% 5.86% 2.34% -9.53% 5.81% 10.42% 18.71%

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 common-size income statement reveals a structural evolution in revenue composition and a general expansion of gross profitability, offset by increasing investments in research and development and periodic non-recurring charges.

Revenue Mix and Gross Margin
Revenue is primarily driven by product sales, which typically fluctuate between 58% and 66% of net revenue. Services represent the remaining portion, generally ranging from 32% to 42%, with a notable peak in April 2020. Gross profit margins have demonstrated a positive trajectory, rising from 28.45% in early 2018 to a range of 33% to 36% in more recent periods. This improvement is largely attributable to a reduction in the cost of products as a percentage of revenue, which decreased from peaks near 47% to lows near 37%.
Operating Expense Trends
Investment in research and development has shown a consistent upward trend, increasing from approximately 5% of net revenue in 2018 to over 8% by early 2024. Selling, general, and administrative expenses have remained relatively stable, though they shifted from a 15% to 16% range in 2018 to a 17% to 18% range in subsequent years. Transformation costs, which were significant in the early part of the analyzed period—reaching as high as 5.24%—have been substantially reduced to under 0.5% in the most recent quarters, indicating a transition toward a more stable operational structure.
Volatility and Non-Recurring Items
Earnings from operations have been subject to significant volatility due to large non-cash charges and one-time gains. Significant impairments of goodwill occurred in April 2020 (-14.40%) and October 2022 (-11.50%), creating sharp dips in operating profitability. Conversely, a substantial litigation judgment in October 2021 provided a one-time boost of 31.97% to net revenue, which heavily skewed the net earnings for that period.
Net Profitability and Tax Impact
Net earnings as a percentage of revenue exhibit extreme variance, influenced heavily by tax indemnifications and provisions. While early periods saw erratic results, the most recent quarters show a more stabilized net profit margin generally falling between 4% and 9%. Financing income has marginally increased over the long term, rising from approximately 1.4% to over 2.2% of net revenue.

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