Return on Equity (ROE)
since 2015
Calculation
Hewlett Packard Enterprise Co., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net earnings (loss) attributable to HPE1 | ÷ | Total HPE stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Oct 31, 2023 | 9.56% | = | 100 | × | 2,025) | ÷ | 21,182) |
| Oct 31, 2022 | 4.37% | = | 100 | × | 868) | ÷ | 19,864) |
| Oct 31, 2021 | 17.16% | = | 100 | × | 3,427) | ÷ | 19,971) |
| Oct 31, 2020 | -2.01% | = | 100 | × | (322) | ÷ | 16,049) |
| Oct 31, 2019 | 6.14% | = | 100 | × | 1,049) | ÷ | 17,098) |
| Oct 31, 2018 | 8.98% | = | 100 | × | 1,908) | ÷ | 21,239) |
| Oct 31, 2017 | 1.47% | = | 100 | × | 344) | ÷ | 23,466) |
| Oct 31, 2016 | 10.05% | = | 100 | × | 3,161) | ÷ | 31,448) |
| Oct 31, 2015 | 7.34% | = | 100 | × | 2,461) | ÷ | 33,535) |
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 financial data reveals varying performance trends in profitability and equity for the period under review. Net earnings attributable to the company show considerable volatility, with notable fluctuations rather than a consistent pattern. There is an initial increase from 2015 to 2016, followed by a sharp decline in 2017. Earnings then rebound in 2018 before decreasing again in 2019 and turning negative in 2020. Recovery is observed in 2021, followed by a drop in 2022 and a subsequent rise in 2023.
Total stockholders’ equity displays a general downward trend from 2015 through 2020, decreasing from a peak in 2015 to the lowest point in 2020. Post-2020, equity shows moderate improvement with fluctuations, but it does not return to the 2015 levels by 2023.
Return on equity (ROE) reflects similar volatility as net earnings. ROE peaks in 2016, declines sharply in 2017, then recovers in 2018 with reduced returns in 2019. The metric turns negative in 2020, consistent with the net loss observed, before achieving its highest value during the period in 2021. In 2022, ROE decreases significantly and recovers again in 2023, though not reaching the previous peak levels.
- Net Earnings (Loss)
- Experience notable volatility: a peak in 2016, sharp decline in 2017, partial recovery and subsequent fluctuations with a significant loss in 2020, followed by recovery in later years.
- Overall, no consistent upward or downward trend, indicating variability in profitability.
- Total Stockholders’ Equity
- Shows a declining trend from 2015 to 2020, suggesting possible asset write-downs, distributions, or accumulated losses.
- Post-2020, equity improves modestly but remains below initial levels, indicating cautious capital restoration.
- Return on Equity (ROE)
- Follows earnings volatility closely, with high returns in 2016 and 2021 and near-zero or negative returns in 2017 and 2020 respectively.
- Reflects sensitivity to both profitability and equity base fluctuations across years.
In summary, the company experiences periods of strong profitability interspersed with phases of reduced earnings and losses. Equity shows a net decrease over the analyzed timeframe, with partial recovery in recent years. Financial returns, as measured by ROE, correspond with earnings performance, highlighting challenges in maintaining steady profitability throughout the period.
Comparison to Competitors
Hewlett Packard Enterprise Co., ROE, 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 | 9.56% | 156.08% | 28.91% | 28.44% | — | 32.45% |
| Oct 31, 2022 | 4.37% | 196.96% | 27.68% | 29.70% | — | 20.00% |
| Oct 31, 2021 | 17.16% | 150.07% | 21.13% | 25.66% | 131.10% | 10.20% |
| Oct 31, 2020 | -2.01% | 87.87% | 19.11% | 29.57% | — | 7.91% |
| Oct 31, 2019 | 6.14% | 61.06% | 29.71% | 34.62% | — | 7.64% |
| Oct 31, 2018 | 8.98% | 55.56% | 15.31% | 0.25% | — | 5.47% |
| Oct 31, 2017 | 1.47% | 36.07% | 25.46% | 14.53% | — | 8.64% |
| Oct 31, 2016 | 10.05% | 35.62% | 16.63% | 16.89% | — | 9.99% |
| Oct 31, 2015 | 7.34% | 44.74% | 15.37% | 15.04% | — | 16.46% |
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., ROE, long-term trends, comparison to sector (technology hardware & equipment)
| Hewlett Packard Enterprise Co. | Technology Hardware & Equipment | |
|---|---|---|
| Oct 31, 2023 | 9.56% | 101.96% |
| Oct 31, 2022 | 4.37% | 124.98% |
| Oct 31, 2021 | 17.16% | 97.82% |
| Oct 31, 2020 | -2.01% | 69.73% |
| Oct 31, 2019 | 6.14% | 53.63% |
| Oct 31, 2018 | 8.98% | 39.14% |
| Oct 31, 2017 | 1.47% | 28.85% |
| Oct 31, 2016 | 10.05% | 29.27% |
| Oct 31, 2015 | 7.34% | 34.69% |
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., ROE, long-term trends, comparison to industry (information technology)
| Hewlett Packard Enterprise Co. | Information Technology | |
|---|---|---|
| Oct 31, 2023 | 9.56% | 31.93% |
| Oct 31, 2022 | 4.37% | 39.07% |
| Oct 31, 2021 | 17.16% | 42.41% |
| Oct 31, 2020 | -2.01% | 35.69% |
| Oct 31, 2019 | 6.14% | 36.61% |
| Oct 31, 2018 | 8.98% | 30.39% |
| Oct 31, 2017 | 1.47% | 23.40% |
| Oct 31, 2016 | 10.05% | 23.36% |
| Oct 31, 2015 | 7.34% | 26.17% |
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).