Hewlett Packard Enterprise Co. (NYSE:HPE)

The financial data reveals notable trends in the company's capital structure over the observed period.

Total debt

Total debt demonstrated a fluctuating pattern from October 2015 through October 2023. Initially, it increased slightly from 15,794 million US$ in 2015 to a peak of 16,140 million US$ in 2016, then trended downward reaching a low of 12,141 million US$ in 2018. Following this, there was an increase again to 15,941 million US$ in 2020 before declining over the next three years to 12,355 million US$ in 2023. Overall, total debt shows variability with a modest decreasing trend towards the end of the period.

Total stockholders’ equity

Stockholders’ equity illustrates a significant decline from 33,535 million US$ in 2015 to 16,049 million US$ in 2020, indicating a reduction of more than 50% over five years. From 2020 onward, this trend reverses with a gradual recovery, increasing to 21,182 million US$ in 2023. Despite this recovery, equity in 2023 remains substantially lower than the initial 2015 level.

Debt to equity ratio

The debt to equity ratio followed a general upward trajectory from 0.47 in 2015 to a peak of 0.99 in 2020, signifying increased leverage and potentially higher financial risk. After 2020, the ratio decreased steadily to 0.58 in 2023, reflecting reduced leverage consistent with the rise in equity and decrease in debt during the same period. The trend in this ratio highlights growing financial prudence or deleveraging after 2020.

In summary, the data indicate an overall contraction in equity and volatile debt levels leading up to 2020, with increased leverage. Since 2020, the company appears to have engaged in deleveraging efforts, reducing debt and rebuilding equity, contributing to a more balanced capital structure by 2023.