Operating Profit Margin
since 2015
Calculation
Hewlett Packard Enterprise Co., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Earnings (loss) from operations1 | ÷ | Net revenue1 | |
|---|---|---|---|---|---|---|---|
| Oct 31, 2023 | 7.17% | = | 100 | × | 2,089) | ÷ | 29,135) |
| Oct 31, 2022 | 2.74% | = | 100 | × | 782) | ÷ | 28,496) |
| Oct 31, 2021 | 4.07% | = | 100 | × | 1,132) | ÷ | 27,784) |
| Oct 31, 2020 | -1.22% | = | 100 | × | (329) | ÷ | 26,982) |
| Oct 31, 2019 | 4.37% | = | 100 | × | 1,274) | ÷ | 29,135) |
| Oct 31, 2018 | 6.02% | = | 100 | × | 1,858) | ÷ | 30,852) |
| Oct 31, 2017 | 2.16% | = | 100 | × | 625) | ÷ | 28,871) |
| Oct 31, 2016 | 8.28% | = | 100 | × | 4,150) | ÷ | 50,123) |
| Oct 31, 2015 | 2.92% | = | 100 | × | 1,523) | ÷ | 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
The operating profit margin has exhibited significant volatility from 2015 through 2023, characterized by sharp fluctuations in profitability and a substantial structural shift in revenue scale. While the period began with high revenue and peaked profitability in 2016, it was followed by a period of instability and a temporary descent into operating losses before a recent recovery.
- Revenue Scaling and Stability
- A primary observation is the significant reduction in net revenue between October 2016 ($50.1 billion) and October 2017 ($28.9 billion). Following this contraction, revenue entered a phase of relative stability, remaining range-bound between approximately $26.9 billion and $30.8 billion for the remainder of the period analyzed.
- Analysis of Profit Margin Volatility
- The operating profit margin reached its peak of 8.28% in 2016, coinciding with earnings from operations of $4.15 billion. A subsequent decline was observed, with the margin dropping to 2.16% in 2017. This volatility continued through 2020, which marked the lowest point in the series with a negative operating margin of -1.22% and an operating loss of $329 million.
- Recent Operational Recovery
- A positive trend in operational efficiency is evident from 2021 onward. After recovering to 4.07% in 2021 and experiencing a slight dip to 2.74% in 2022, the operating profit margin increased significantly to 7.17% by October 2023. This recovery is highlighted by earnings from operations reaching $2.09 billion, the highest level since 2018, achieved on a revenue base similar to that of previous years.
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Comparison to Competitors
Hewlett Packard Enterprise Co., operating 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 | 7.17% | 29.82% | 38.52% | 26.37% | 5.64% | -6.55% | 10.68% |
| Oct 31, 2022 | 2.74% | 30.29% | 34.86% | 27.09% | 4.60% | 17.71% | 6.45% |
| Oct 31, 2021 | 4.07% | 29.78% | 31.37% | 25.76% | 5.46% | 30.24% | 3.48% |
| Oct 31, 2020 | -1.22% | 24.15% | 30.19% | 27.63% | 2.85% | 12.16% | 2.57% |
| Oct 31, 2019 | 4.37% | 24.57% | 33.42% | 27.39% | -0.21% | -1.38% | 2.78% |
| Oct 31, 2018 | 6.02% | 26.69% | 12.71% | 24.95% | — | 11.21% | 2.82% |
| Oct 31, 2017 | 2.16% | 26.76% | 28.57% | 24.94% | — | 4.75% | 3.82% |
| Oct 31, 2016 | 8.28% | 27.84% | 21.56% | 25.71% | — | 1.27% | 4.82% |
| Oct 31, 2015 | 2.92% | 30.48% | 17.83% | 21.91% | — | -2.80% | 7.37% |
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).