Return on Assets (ROA)
since 2015
Calculation
Hewlett Packard Enterprise Co., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net earnings (loss) attributable to HPE1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Oct 31, 2023 | 3.54% | = | 100 | × | 2,025) | ÷ | 57,153) |
| Oct 31, 2022 | 1.52% | = | 100 | × | 868) | ÷ | 57,123) |
| Oct 31, 2021 | 5.94% | = | 100 | × | 3,427) | ÷ | 57,699) |
| Oct 31, 2020 | -0.60% | = | 100 | × | (322) | ÷ | 54,015) |
| Oct 31, 2019 | 2.02% | = | 100 | × | 1,049) | ÷ | 51,803) |
| Oct 31, 2018 | 3.44% | = | 100 | × | 1,908) | ÷ | 55,493) |
| Oct 31, 2017 | 0.56% | = | 100 | × | 344) | ÷ | 61,406) |
| Oct 31, 2016 | 3.97% | = | 100 | × | 3,161) | ÷ | 79,679) |
| Oct 31, 2015 | 3.03% | = | 100 | × | 2,461) | ÷ | 81,270) |
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 return on assets (ROA) exhibits significant volatility over the analyzed period, reflecting substantial fluctuations in net earnings coupled with a strategic contraction and subsequent stabilization of the total asset base.
- Net Earnings Volatility
- Net earnings demonstrated extreme variance, with a notable peak of 3,427 million USD in 2021 and a deficit of 322 million USD in 2020. A sharp decline occurred in 2017, where earnings dropped to 344 million USD from 3,161 million USD the previous year. A recovery trend is observed toward the end of the period, with earnings increasing to 2,025 million USD by 2023.
- Asset Base Evolution
- A consistent downward trend in total assets was observed between 2015 and 2019, with the balance decreasing from 81,270 million USD to a minimum of 51,803 million USD. Following this contraction, the asset base entered a period of relative stability, oscillating between 54,015 million USD and 57,699 million USD from 2020 through 2023.
- Return on Assets (ROA) Interpretation
- The ROA mirrored the volatility of net earnings, reaching a peak of 5.94% in 2021 and a trough of -0.60% in 2020. Despite the reduction in total assets during the early years of the period, efficiency gains were inconsistent. The ROA fell sharply to 0.56% in 2017 before recovering. In the most recent two-year window, the ROA more than doubled, rising from 1.52% in 2022 to 3.54% in 2023, suggesting an improvement in the ability to generate profit from the current asset base.
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Comparison to Competitors
Hewlett Packard Enterprise Co., ROA, 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 | 3.54% | 27.51% | 20.98% | 12.38% | 2.73% | -2.84% | 17.42% |
| Oct 31, 2022 | 1.52% | 28.29% | 19.96% | 12.57% | 6.00% | 4.78% | 8.90% |
| Oct 31, 2021 | 5.94% | 26.97% | 14.66% | 10.86% | 2.63% | 11.19% | 4.99% |
| Oct 31, 2020 | -0.60% | 17.73% | 13.39% | 11.82% | 3.88% | 4.12% | 4.39% |
| Oct 31, 2019 | 2.02% | 16.32% | 20.54% | 11.88% | -2.07% | -1.34% | 4.27% |
| Oct 31, 2018 | 3.44% | 16.28% | 10.65% | 0.10% | — | 15.69% | 2.61% |
| Oct 31, 2017 | 0.56% | 12.88% | 17.20% | 7.40% | — | -8.31% | 4.41% |
| Oct 31, 2016 | 3.97% | 14.20% | 10.65% | 8.83% | — | 1.28% | 6.18% |
| Oct 31, 2015 | 3.03% | 18.38% | 10.44% | 7.91% | — | -0.66% | 9.35% |
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., ROA, long-term trends, comparison to sector (technology hardware & equipment)
| Hewlett Packard Enterprise Co. | Technology Hardware & Equipment | |
|---|---|---|
| Oct 31, 2023 | 3.54% | 20.39% |
| Oct 31, 2022 | 1.52% | 21.50% |
| Oct 31, 2021 | 5.94% | 18.83% |
| Oct 31, 2020 | -0.60% | 13.53% |
| Oct 31, 2019 | 2.02% | 11.76% |
| Oct 31, 2018 | 3.44% | 12.53% |
| Oct 31, 2017 | 0.56% | 11.43% |
| Oct 31, 2016 | 3.97% | 12.68% |
| Oct 31, 2015 | 3.03% | 15.39% |
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., ROA, long-term trends, comparison to industry (information technology)
| Hewlett Packard Enterprise Co. | Information Technology | |
|---|---|---|
| Oct 31, 2023 | 3.54% | 12.34% |
| Oct 31, 2022 | 1.52% | 14.33% |
| Oct 31, 2021 | 5.94% | 14.52% |
| Oct 31, 2020 | -0.60% | 11.46% |
| Oct 31, 2019 | 2.02% | 11.67% |
| Oct 31, 2018 | 3.44% | 10.94% |
| Oct 31, 2017 | 0.56% | 9.00% |
| Oct 31, 2016 | 3.97% | 9.68% |
| Oct 31, 2015 | 3.03% | 11.51% |
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).