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
- Earnings (loss) from operations
- The earnings from operations exhibit significant fluctuations over the observed period. Starting at $1,523 million in 2015, there is a notable peak at $4,150 million in 2016, followed by a sharp decline to $625 million in 2017. After this downturn, earnings increased to $1,858 million in 2018 but then showed a gradual decline to negative earnings of $329 million in 2020, representing an operational loss. Subsequently, earnings recovered to $1,132 million in 2021, dipped slightly to $782 million in 2022, and then increased again to $2,089 million in 2023. This pattern suggests volatility in operational performance with a recovery trend after 2020.
- Net revenue
- The net revenue shows a general declining trend in the earlier years, starting at $52,107 million in 2015 and decreasing to $26,982 million by 2020. This decline is interrupted by some minor increases, such as in 2018 and 2023, but overall the revenue remains relatively stable between approximately $27 billion and $29 billion from 2020 to 2023, ending at $29,135 million in the latest period. This pattern indicates a contraction in revenue followed by stabilization in recent years.
- Operating profit margin
- The operating profit margin exhibits a volatile pattern across the years. Starting from a low margin of 2.92% in 2015, it surged to 8.28% in 2016, then sharply dropped to 2.16% in 2017. Margins improved to 6.02% in 2018 but declined again to 4.37% in 2019. In 2020, the margin fell into negative territory at -1.22%, indicating operational losses. Following this, the margin recovered to positive levels, reaching 4.07% in 2021 and then fluctuated slightly downward to 2.74% in 2022 before increasing again to 7.17% in 2023. This trend highlights periods of strong profitability alternating with downturns, including a notable dip during the pandemic year 2020, followed by recovery.
- Overall insights
- The data reveals a pattern of volatility in both operational earnings and profitability margins, with a marked disruption around 2020. Despite the fluctuations, net revenue stabilized in the later years after a period of decline. The recovery in earnings and profit margins post-2020 suggests improving operational efficiency or market conditions. However, the overall earnings pattern implies challenges in sustaining consistent profitability. Continuous monitoring of these metrics will be essential to assess future financial health and operational efficiency.
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. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|---|
| Oct 31, 2023 | 7.17% | 29.82% | 38.52% | 26.37% | 5.64% | 10.68% |
| Oct 31, 2022 | 2.74% | 30.29% | 34.86% | 27.09% | 4.60% | 6.45% |
| Oct 31, 2021 | 4.07% | 29.78% | 31.37% | 25.76% | 5.46% | 3.48% |
| Oct 31, 2020 | -1.22% | 24.15% | 30.19% | 27.63% | 2.85% | 2.57% |
| Oct 31, 2019 | 4.37% | 24.57% | 33.42% | 27.39% | -0.21% | 2.78% |
| Oct 31, 2018 | 6.02% | 26.69% | 12.71% | 24.95% | — | 2.82% |
| Oct 31, 2017 | 2.16% | 26.76% | 28.57% | 24.94% | — | 3.82% |
| Oct 31, 2016 | 8.28% | 27.84% | 21.56% | 25.71% | — | 4.82% |
| Oct 31, 2015 | 2.92% | 30.48% | 17.83% | 21.91% | — | 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).