Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
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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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Hewlett Packard Enterprise Co., consolidated income statement
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 financial data reveals a number of notable trends across the analyzed fiscal years.
- Revenue
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Product revenue experienced a decline from 2018 to 2020, falling from 19,504 million USD to 16,264 million USD, followed by a gradual recovery reaching 18,100 million USD by 2023. Service revenue showed a slight but steady decrease over time, from 10,901 million USD in 2018 to 10,219 million USD in 2022, before a modest increase to 10,488 million USD in 2023. Financing income increased consistently throughout the period, rising from 447 million USD in 2018 to 547 million USD in 2023. Net revenue followed a declining trend from 2018 (30,852 million USD) to 2020 (26,982 million USD), then progressively improved to 29,135 million USD by 2023.
- Costs and Expenses
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The cost of products decreased significantly between 2018 and 2020, dropping from 14,079 million USD to 11,698 million USD, but then fluctuated slightly, ending at 11,958 million USD in 2023. Cost of services showed a consistent decline from 7,203 million USD in 2018 to a low of 6,217 million USD in 2022, before rising again to 6,555 million USD in 2023. Financing costs varied over the years, with a peak in 2023 at 383 million USD, notably higher than 212 million USD in 2021. Overall cost of revenue declined sharply from 21,560 million USD in 2018 to 18,513 million USD in 2020 and then stabilized around 18,896 million USD by 2023.
- Profitability
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Gross profit followed a decreasing trend from 2018 to 2020, dropping from 9,292 million USD to 8,469 million USD, then recovered to reach an all-time high of 10,239 million USD in 2023. Research and development expenses increased steadily from 1,663 million USD in 2018 to 2,349 million USD in 2023, indicating a rising investment in innovation. Selling, general and administrative expenses remained relatively stable, fluctuating slightly around the 4,800–5,160 million USD range. Amortization of intangible assets showed minor fluctuations without a clear directional trend. Impairment of goodwill was significant and irregular, with notable charges in 2020 and 2022 reflecting possible asset write-downs.
Transformation costs peaked in 2020 at 950 million USD, then declined substantially to 283 million USD in 2023, suggesting reduced restructuring or integration activities. Other special charges such as disaster recoveries and acquisition-related costs were sporadic and minor in comparison.
- Operating and Net Earnings
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Earnings from operations demonstrated volatility, with a significant loss in 2020 (-329 million USD) contrasting with considerable positive results in other years, such as 2,089 million USD in 2023. Interest and other net amounts varied, with a general increase toward 2023. Interest expenses decreased until 2022 but spiked again in 2023. Tax adjustments fluctuated, with positive impacts in some years and negative in others, lacking a clear trend.
Net earnings from continuing operations reflected the pattern seen in earnings from operations, with a loss in 2020 followed by recovery and high positive earnings in 2021 and 2023. The year 2020 notably showed net losses from continuing operations and overall net losses, while other years posted profits. Net earnings attributable to the company followed the same trend, highlighting volatility but an overall recovery after the 2020 dip.
- Additional Insights
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The data also shows a substantial litigation judgment recorded in 2021, which may have influenced that year's financial results significantly. Earnings from equity interests have steadily increased over the years, indicating improved performance from associated entities or investments. Non-service net periodic benefit credits were positive in multiple years except for 2023, where a small cost was recorded.
In summary, the financial data depicts a period of contraction in revenue and profitability around 2020, followed by gradual recovery and improvement through 2023. Cost management appears variable, with significant investments in research and development and episodic charges impacting earnings. The overall trajectory suggests resilience and a positive turnaround after the challenges of the earlier period.