Net Profit Margin
since 2015
Calculation
Hewlett Packard Enterprise Co., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net earnings (loss) attributable to HPE1 | ÷ | Net revenue1 | |
|---|---|---|---|---|---|---|---|
| Oct 31, 2023 | 6.95% | = | 100 | × | 2,025) | ÷ | 29,135) |
| Oct 31, 2022 | 3.05% | = | 100 | × | 868) | ÷ | 28,496) |
| Oct 31, 2021 | 12.33% | = | 100 | × | 3,427) | ÷ | 27,784) |
| Oct 31, 2020 | -1.19% | = | 100 | × | (322) | ÷ | 26,982) |
| Oct 31, 2019 | 3.60% | = | 100 | × | 1,049) | ÷ | 29,135) |
| Oct 31, 2018 | 6.18% | = | 100 | × | 1,908) | ÷ | 30,852) |
| Oct 31, 2017 | 1.19% | = | 100 | × | 344) | ÷ | 28,871) |
| Oct 31, 2016 | 6.31% | = | 100 | × | 3,161) | ÷ | 50,123) |
| Oct 31, 2015 | 4.72% | = | 100 | × | 2,461) | ÷ | 52,107) |
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
Between 2015 and 2023, financial performance was characterized by significant volatility in net earnings and profit margins, contrasted by a stabilization of net revenue following a sharp contraction in 2017.
- Revenue Trajectory
- Net revenue experienced a substantial decrease between October 2016 and October 2017, falling from $50.1 billion to $28.9 billion. Since that contraction, revenue has remained relatively stagnant, fluctuating within a narrow band between $26.9 billion and $29.1 billion over the subsequent six years.
- Net Profit Margin Fluctuations
- The net profit margin exhibited extreme variance over the observed period. After reaching 6.31% in 2016, the margin collapsed to 1.19% in 2017. Although a recovery to 6.18% was recorded in 2018, a subsequent downward trend led to a net loss and a negative margin of -1.19% in 2020.
- Profitability Peaks and Recent Trends
- A significant outlier occurred in 2021, when the net profit margin surged to a peak of 12.33%, coinciding with the highest net earnings of $3.4 billion in the data set. This peak was followed by a sharp decline to 3.05% in 2022, before rebounding to 6.95% by October 2023, suggesting a return to historical profitability levels seen in 2016 and 2018.
- Earnings Correlation
- Net earnings mirrored the instability of the profit margins, moving from a loss of $322 million in 2020 to a peak of $3.4 billion in 2021. Because net revenue has remained largely flat since 2017, the wide swings in net profit margins indicate that profitability has been driven primarily by changes in cost structures, operational efficiencies, or non-operating items rather than top-line growth.
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Comparison to Competitors
Hewlett Packard Enterprise Co., net profit margin, 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 | 6.95% | 25.31% | 35.62% | 22.13% | 2.39% | -7.45% | 8.98% |
| Oct 31, 2022 | 3.05% | 25.31% | 30.87% | 22.91% | 5.50% | 11.61% | 5.49% |
| Oct 31, 2021 | 12.33% | 25.88% | 28.52% | 21.26% | 3.45% | 22.80% | 3.14% |
| Oct 31, 2020 | -1.19% | 20.91% | 27.38% | 22.75% | 5.01% | 8.07% | 2.52% |
| Oct 31, 2019 | 3.60% | 21.24% | 35.67% | 22.39% | -2.55% | -2.33% | 2.05% |
| Oct 31, 2018 | 6.18% | 22.41% | 15.25% | 0.22% | — | 19.88% | 1.37% |
| Oct 31, 2017 | 1.19% | 21.09% | 25.71% | 20.02% | — | -10.23% | 2.69% |
| Oct 31, 2016 | 6.31% | 21.19% | 16.31% | 21.81% | — | 1.03% | 3.25% |
| Oct 31, 2015 | 4.72% | 22.85% | 14.46% | 18.27% | — | -0.41% | 5.12% |
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., net profit margin, long-term trends, comparison to sector (technology hardware & equipment)
| Hewlett Packard Enterprise Co. | Technology Hardware & Equipment | |
|---|---|---|
| Oct 31, 2023 | 6.95% | 20.57% |
| Oct 31, 2022 | 3.05% | 21.31% |
| Oct 31, 2021 | 12.33% | 21.21% |
| Oct 31, 2020 | -1.19% | 17.50% |
| Oct 31, 2019 | 3.60% | 15.96% |
| Oct 31, 2018 | 6.18% | 18.73% |
| Oct 31, 2017 | 1.19% | 20.66% |
| Oct 31, 2016 | 6.31% | 21.06% |
| Oct 31, 2015 | 4.72% | 21.84% |
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., net profit margin, long-term trends, comparison to industry (information technology)
| Hewlett Packard Enterprise Co. | Information Technology | |
|---|---|---|
| Oct 31, 2023 | 6.95% | 20.24% |
| Oct 31, 2022 | 3.05% | 22.27% |
| Oct 31, 2021 | 12.33% | 23.48% |
| Oct 31, 2020 | -1.19% | 19.76% |
| Oct 31, 2019 | 3.60% | 19.73% |
| Oct 31, 2018 | 6.18% | 18.59% |
| Oct 31, 2017 | 1.19% | 17.77% |
| Oct 31, 2016 | 6.31% | 17.58% |
| Oct 31, 2015 | 4.72% | 18.32% |
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).