Debt to Equity
since 2015
Calculation
Hewlett Packard Enterprise Co., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Total HPE stockholders’ equity1 | |
|---|---|---|---|---|---|
| Oct 31, 2023 | 0.58 | = | 12,355) | ÷ | 21,182) |
| Oct 31, 2022 | 0.63 | = | 12,465) | ÷ | 19,864) |
| Oct 31, 2021 | 0.67 | = | 13,448) | ÷ | 19,971) |
| Oct 31, 2020 | 0.99 | = | 15,941) | ÷ | 16,049) |
| Oct 31, 2019 | 0.81 | = | 13,820) | ÷ | 17,098) |
| Oct 31, 2018 | 0.57 | = | 12,141) | ÷ | 21,239) |
| Oct 31, 2017 | 0.60 | = | 14,032) | ÷ | 23,466) |
| Oct 31, 2016 | 0.51 | = | 16,140) | ÷ | 31,448) |
| Oct 31, 2015 | 0.47 | = | 15,794) | ÷ | 33,535) |
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), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31).
1 US$ in millions
The company's capital structure exhibited a period of increasing leverage between 2015 and 2020, followed by a phase of deleveraging through 2023. The overall trend indicates a significant shift in the balance between debt and equity, characterized by a peak in leverage in 2020 and a subsequent return toward historical norms.
- Total Debt Trends
- Debt levels remained relatively stable through the first half of the observed period, fluctuating between 12.1 billion and 16.1 billion US dollars. After reaching a peak of 15.9 billion US dollars in 2020, total debt entered a consistent downward trajectory, decreasing to 12.4 billion US dollars by October 31, 2023.
- Stockholders' Equity Movements
- A pronounced contraction in stockholders' equity occurred from 2015 to 2020, where equity fell from 33.5 billion US dollars to a low of 16.0 billion US dollars. This represents a reduction of approximately 52% of the equity base over five years. Following this low point, a steady recovery was observed, with equity rising to 21.2 billion US dollars by 2023.
- Debt to Equity Ratio Analysis
- The debt to equity ratio climbed steadily from 0.47 in 2015 to a peak of 0.99 in 2020. This escalation was primarily driven by the decline in stockholders' equity rather than a proportional increase in total debt. Since 2020, the ratio has declined consistently, reaching 0.58 by 2023, signifying a reduction in financial leverage and an improvement in the solvency profile.
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Comparison to Competitors
Hewlett Packard Enterprise Co., debt to equity, long-term trends, comparison to competitors
| Hewlett Packard Enterprise Co. | Apple Inc. | Arista Networks Inc. | Cisco Systems Inc. | Dell Technologies Inc. | Lumentum Holdings Inc. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|---|---|
| Oct 31, 2023 | 0.58 | 1.79 | 0.00 | 0.19 | — | 0.23 | 0.15 |
| Oct 31, 2022 | 0.63 | 2.37 | 0.00 | 0.24 | — | 1.00 | 0.42 |
| Oct 31, 2021 | 0.67 | 1.98 | 0.00 | 0.28 | 19.36 | 0.60 | 0.09 |
| Oct 31, 2020 | 0.99 | 1.72 | 0.00 | 0.38 | — | 0.64 | 0.03 |
| Oct 31, 2019 | 0.81 | 1.19 | 0.00 | 0.73 | — | 0.56 | 0.03 |
| Oct 31, 2018 | 0.57 | 1.07 | 0.02 | 0.59 | — | 0.36 | 0.14 |
| Oct 31, 2017 | 0.60 | 0.86 | 0.02 | 0.51 | — | 0.51 | 0.21 |
| Oct 31, 2016 | 0.51 | 0.68 | 0.04 | 0.45 | — | 0.00 | 0.13 |
| Oct 31, 2015 | 0.47 | 0.54 | 0.05 | 0.42 | — | 0.00 | 0.15 |
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), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31).
Comparison to Sector (Technology Hardware & Equipment)
Hewlett Packard Enterprise Co., debt to equity, long-term trends, comparison to sector (technology hardware & equipment)
| Hewlett Packard Enterprise Co. | Technology Hardware & Equipment | |
|---|---|---|
| Oct 31, 2023 | 0.58 | 1.31 |
| Oct 31, 2022 | 0.63 | 1.64 |
| Oct 31, 2021 | 0.67 | 1.63 |
| Oct 31, 2020 | 0.99 | 1.67 |
| Oct 31, 2019 | 0.81 | 1.51 |
| Oct 31, 2018 | 0.57 | 0.91 |
| Oct 31, 2017 | 0.60 | 0.74 |
| Oct 31, 2016 | 0.51 | 0.60 |
| Oct 31, 2015 | 0.47 | 0.50 |
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), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31).
Comparison to Industry (Information Technology)
Hewlett Packard Enterprise Co., debt to equity, long-term trends, comparison to industry (information technology)
| Hewlett Packard Enterprise Co. | Information Technology | |
|---|---|---|
| Oct 31, 2023 | 0.58 | 0.65 |
| Oct 31, 2022 | 0.63 | 0.70 |
| Oct 31, 2021 | 0.67 | 0.82 |
| Oct 31, 2020 | 0.99 | 0.95 |
| Oct 31, 2019 | 0.81 | 0.97 |
| Oct 31, 2018 | 0.57 | 0.82 |
| Oct 31, 2017 | 0.60 | 0.80 |
| Oct 31, 2016 | 0.51 | 0.65 |
| Oct 31, 2015 | 0.47 | 0.56 |
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), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31).