Hewlett Packard Enterprise Co. (NYSE:HPE)

Current assets

The current assets exhibited a fluctuating trend over the reported periods. Initially, there was a decrease from 17,272 million USD in 2018 to 15,143 million USD in 2019. This was followed by a recovery phase with a steady increase reaching a peak of 20,506 million USD in 2022. However, in 2023, the current assets declined to 18,948 million USD.

Adjusted current assets

The adjusted current assets mirrored the pattern of the current assets closely, starting at 17,311 million USD in 2018, dipping slightly to 15,174 million USD in 2019, then rising consistently to 20,531 million USD in 2022. A similar decline was observed in 2023 with values falling to 18,985 million USD.

Overall Trend Analysis

Both current assets and adjusted current assets indicated a comparable trajectory, with a notable dip in 2019, followed by a consistent growth trend until 2022. The decline in 2023 suggests a potential contraction or realignment in short-term asset management. The close alignment of current and adjusted current assets implies that the adjustments made had a minimal impact on the reported values and trends.

The analysis of the annual financial data over the six-year period reveals a series of trends in the total and adjusted total assets.

Total assets

The total assets experienced a decline from 55,493 million USD in 2018 to 51,803 million USD in 2019, indicating a decrease during this period. However, in the following years, total assets showed a moderate recovery, increasing to 54,015 million USD in 2020 and continuing to rise to 57,699 million USD by 2021. After 2021, there was a slight decrease to 57,123 million USD in 2022, followed by a marginal increase to 57,153 million USD in 2023. Overall, total assets displayed a pattern of initial decline, subsequent recovery, and relative stabilization in recent years.

Adjusted total assets

Adjusted total assets also followed a somewhat similar trajectory. Starting at 56,518 million USD in 2018, there was a decrease to 53,668 million USD in 2019, followed by a further decline to 52,283 million USD in 2020. The adjusted total assets then increased to 55,699 million USD in 2021, suggesting an improvement. However, the values slightly dropped again to 55,021 million USD in 2022 and marginally decreased to 54,926 million USD in 2023. This pattern indicates a fluctuating but generally downward trend from 2018 to 2020, followed by partial recovery, and a modest decline thereafter.

In summary, both total and adjusted total assets demonstrate initial declines around 2019 and 2020, followed by recoveries primarily in 2021. Total assets have stabilized in the last two years, while adjusted total assets have shown a slight downward tendency after their peak in 2021. These trends suggest careful management of asset levels with some volatility corresponding to external or internal factors during the period under review.

The analysis of the financial data reveals discernible trends in liabilities over the six-year period ending October 31, 2023.

Current Liabilities

Current liabilities demonstrate a general upward trajectory from 2018 through 2022. The figures increased from $17,198 million in 2018 to a peak of $23,174 million in 2022. This upward movement indicates a growing short-term obligation load for the company during this timeframe. Notably, there is a reversal in this trend observed in 2023, with a decline to $21,882 million, suggesting some measure of liability management or reduction efforts in the most recent year.

Adjusted Current Liabilities

Adjusted current liabilities follow a similar pattern to total current liabilities, increasing steadily from $13,486 million in 2018 to $19,339 million in 2022. This adjusted figure likely provides a refined view of short-term liabilities, excluding certain components. As with total current liabilities, the adjusted values experienced a decrease in 2023, falling to $17,877 million. The decline may reflect improved control over certain liabilities or reclassification adjustments.

Overall, both total and adjusted current liabilities have exhibited growth from 2018 up to 2022, indicating an expansion in short-term obligations during these years. The downward movement in 2023 across both metrics could suggest a strategic focus on liability reduction or shifts in operational financing structure, which may positively influence the company’s liquidity position going forward.

Total liabilities

The total liabilities have shown a generally stable trend over the six-year period. Beginning at 34,219 million US dollars at the end of October 2018, the figure increased moderately, reaching a peak of 37,919 million in 2020. Following this peak, total liabilities slightly declined but remained close to this elevated level through 2021 and 2022, before decreasing more noticeably in 2023 to 35,915 million. Overall, the total liabilities have fluctuated within a relatively narrow range, with the most recent value lower than the peak years but still above the initial value.

Adjusted total liabilities

The adjusted total liabilities have displayed a gradual and consistent downward trend from 2018 to 2023. Starting at 30,833 million US dollars in 2018, this metric decreased slightly in 2019 and continued a persistent decline in the following years. By 2023, adjusted total liabilities had fallen to 28,152 million, representing a reduction of approximately 8.7% over the six-year period. This trend suggests a steady improvement in the adjusted liability position, which may reflect effective management of certain liabilities or adjustments excluding specific items over time.

Total HPE stockholders’ equity

The total stockholders’ equity experienced a notable decline from 21,239 million USD in 2018 to a low of 16,049 million USD in 2020. Following this reduction, the equity rebounded significantly, reaching 19,971 million USD in 2021 and stabilizing around 19,800 million USD in 2022. By 2023, it increased further to 21,182 million USD, nearly recovering to the initial 2018 level. This pattern suggests a period of equity contraction followed by a phase of recovery and growth.

Adjusted total stockholders’ equity

Adjusted total stockholders’ equity shows a similar declining trend from 25,685 million USD in 2018 to 21,620 million USD in 2020. Subsequently, it demonstrated a steady upward trajectory, rising to 25,508 million USD in 2021. Despite a slight dip to 25,085 million USD in 2022, the adjusted equity rose again to 26,774 million USD in 2023. Overall, adjusted equity maintained a higher level than the unadjusted equity throughout the period and recovered more robustly after 2020.

General Observations

Both metrics reflect an initial downturn over the first three years, with the nadir occurring in the fiscal year ending October 31, 2020. Following this, there is a clear recovery trend, indicating improved equity positions in the subsequent years. The adjusted equity consistently exceeds the total equity measure, highlighting potential accounting adjustments or valuation factors that favorably impact the shareholders' equity representation. The data suggest that the company overcame earlier reductions in equity, moving towards stronger financial standing by 2023.

The financial data indicates several notable trends in the company's debt, equity, and overall capital structure over the six-year period ending October 31, 2023.

Total Reported Debt

The total reported debt showed an increasing trend from 2018 through 2020, rising from approximately $12.1 billion to $15.9 billion. This was followed by a consistent decline from 2020 to 2023, with debt decreasing to around $12.4 billion by 2023, slightly lower than the 2018 level. The peak debt level in 2020 may indicate increased borrowing, possibly for investment or operational needs, which was subsequently reduced over the following years.

Total HPE Stockholders’ Equity

Shareholders’ equity declined notably from about $21.2 billion in 2018 to a low of approximately $16.0 billion in 2020. From 2020 to 2023, equity recovered steadily, reaching roughly $21.2 billion by 2023, close to the initial 2018 figure. This decline and subsequent recovery may reflect fluctuations in retained earnings, asset revaluations, or share repurchases followed by improved profitability or capital injections.

Total Reported Capital

Total reported capital, the sum of debt and equity, decreased from approximately $33.4 billion in 2018 to $31.0 billion in 2019, then increased back to around $33.5 billion by 2023, showing relatively moderate volatility overall. The capital levels appear to have stabilized in recent years after a dip in 2019.

Adjusted Total Debt

Adjusted debt figures generally mirror the total reported debt trend but at higher values. Adjusted debt rose from about $15.5 billion in 2018 to a peak of $17.2 billion in 2019 and remained somewhat stable around $17 billion in 2020. Subsequently, it decreased steadily to about $13.5 billion by 2023, indicating a concerted effort to manage and reduce adjusted liabilities over time.

Adjusted Total Stockholders’ Equity

Adjusted equity decreased from roughly $25.7 billion in 2018 to $21.6 billion in 2020, followed by a steady increase to $26.8 billion in 2023. This pattern is consistent with the reported equity figures but on a higher scale, suggesting adjustments that increase the equity base, possibly related to valuation changes or accounting treatments.

Adjusted Total Capital

Adjusted capital demonstrates relative stability with slight fluctuations, declining from about $41.2 billion in 2018 to $38.6 billion in 2020, then increasing to approximately $40.3 billion by 2023. The generally stable adjusted capital base suggests maintained overall financial resources despite interim fluctuations in debt and equity components.

In summary, the company’s financial position shows an initial increase in debt and decline in equity through 2020, followed by a period of deleveraging and equity rebuilding through 2023. Both reported and adjusted figures trend similarly, with adjusted amounts consistently higher, reflecting conservative treatments or valuation adjustments. Total capital remained stable over the period, indicating balanced management of financial resources despite fluctuations in individual components.

Revenue Trends

The net revenue exhibited a declining trend from 2018 through 2020, decreasing from $30,852 million in 2018 to $26,982 million in 2020. This was followed by a gradual recovery phase, with net revenue increasing to $27,784 million in 2021, then rising further to $28,496 million in 2022, and reaching $29,135 million in 2023. The overall trend indicates a contraction over the initial two years, followed by a steady upward trajectory over the subsequent three years.

Adjusted Net Revenue Trends

Adjusted net revenue similarly declined from 2018 to 2020, moving from $31,060 million to $27,212 million. From 2021 onward, a consistent recovery is visible, with adjusted net revenue increasing to $27,949 million in 2021, then to $28,522 million in 2022, and reaching $29,668 million in 2023. This pattern mirrors the net revenue trend but shows slightly higher values, suggesting adjustments that positively impacted revenue reporting.

Comparison and Insights

Both net revenue and adjusted net revenue display parallel trends over the six-year period with initial decline followed by recovery. The adjusted figures are consistently higher than the reported net revenue, indicating potential adjustments such as exclusion of non-recurring items or other accounting considerations. The recovery after 2020 could imply effective strategic or market responses post the period of decline.

Net Earnings (Loss) Attributable to HPE

Net earnings showed significant volatility over the six-year period. The value decreased sharply from 1,908 million USD in 2018 to 1,049 million USD in 2019, followed by a substantial loss of 322 million USD in 2020. A notable recovery occurred in 2021, with net earnings rising dramatically to 3,427 million USD. After this peak, net earnings declined to 868 million USD in 2022 but rebounded again to 2,025 million USD in 2023. This pattern indicates considerable fluctuations in profitability with periods of both losses and strong gains.

Adjusted Net Earnings (Loss)

Adjusted net earnings followed a somewhat similar trend to net earnings but with fewer extreme fluctuations. Starting at 1,842 million USD in 2018, there was an increase to 1,660 million USD in 2019, followed by a loss of 373 million USD in 2020. A sharp increase was recorded in 2021, reaching 4,301 million USD, the highest point in this series. Subsequent years showed a steep decline to 404 million USD in 2022 but a significant recovery to 2,474 million USD in 2023. The adjusted figures suggest that excluding certain items, the underlying earnings remain volatile but with an overall upward recovery trend in the later years.