Hewlett Packard Enterprise Co. (NYSE:HPE)

Net Revenue

Net revenue exhibited a significant decline from 2015 to 2017, dropping from 52,107 million USD to 28,871 million USD. After 2017, revenue stabilized with minor fluctuations, maintaining a range between approximately 27,000 and 29,000 million USD through to 2023. The initial sharp decline suggests a substantial contraction or divestiture, followed by a period of relative stabilization in subsequent years.

Earnings from Operations

Operating earnings demonstrated considerable volatility across the period. Beginning at 1,523 million USD in 2015, a peak of 4,150 million USD was reached in 2016. This was followed by a sharp decrease to 625 million USD in 2017. Subsequent years saw fluctuations with operating earnings ranging from a loss of 329 million USD in 2020 to positive values over 1,000 million USD in other years. The pattern indicates periods of operational challenges and recovery, reflecting potential restructuring, cost management efforts, or market conditions impacting operational efficiency.

Net Earnings (Loss) Attributable to HPE

Net earnings followed a pattern akin to operating earnings but with more pronounced fluctuations. Earnings were positive and relatively high in 2015 and 2016 at 2,461 and 3,161 million USD respectively, followed by a sharp drop to 344 million USD in 2017. After partial recovery in 2018, net earnings again declined to a negative figure in 2020 (-322 million USD). A substantial rebound in 2021 resulted in a notably high net earnings value of 3,427 million USD. The subsequent years saw positive but lower net earnings, exceeding 800 million USD through 2023. This suggests volatile profitability, likely linked to operational performance, non-operating factors, or one-time items influencing net results over the years.

Overall Trends

The company experienced a sharp decline in revenue early in the period, followed by stabilization. Earnings from operations and net earnings were highly volatile, with evidence of both strong gains and significant losses. The fluctuations in profitability highlight underlying challenges impacting financial performance, with signs of notable recovery periods offset by downturns. The data indicates efforts to regain and sustain profitability despite revenue pressures.

The financial data reveals notable trends in the asset structure over the observed nine-year period.

Current assets

Current assets exhibited a consistent downward trend from 2015 through 2019, declining from approximately $31,173 million to $15,143 million. This sharp decrease signifies a reduction of over 50% in liquid or short-term assets during this timeframe. Beginning in 2020, current assets showed a reversal in the trend, experiencing a gradual increase up to 2022, reaching a peak near $20,506 million. However, in 2023, there was a slight decrease to about $18,948 million. This pattern indicates some recovery in short-term asset levels after a prolonged decline, although not reaching earlier levels.

Total assets

Total assets followed a somewhat similar trajectory but with less volatility. From 2015 to 2019, total assets decreased substantially from around $81,270 million to $51,803 million, a reduction of approximately 36%. This decrease was less pronounced than that observed in current assets, implying shifts in the composition of asset holdings. Following 2019, total assets showed modest recovery, growing gradually from 2020 to 2021, and then stabilizing around the $57,000 million mark through 2023. The stabilization suggests the company may have reached a new asset base equilibrium following the earlier contraction.

Overall, the period from 2015 to 2019 was marked by significant contraction in both current and total assets, potentially reflecting strategic restructuring, divestitures, or operational challenges. The subsequent period from 2020 onwards indicates a cautious rebuilding or stabilization phase, with current assets recovering more noticeably than total assets. This could point to improved liquidity or short-term financial positioning efforts. The data does not reflect any extreme volatility in total assets during the latter period, suggesting controlled asset management practices.

The analysis of the annual financial data reveals several notable trends regarding the company's liabilities, debt levels, and stockholders’ equity over the period from 2015 to 2023.

Current liabilities

Current liabilities experienced fluctuations during the period. Starting at 22,151 million USD in 2015, they remained relatively stable through 2016 but then showed a decline, reaching a low of 17,198 million USD in 2018. Following this, the liabilities ascended again, peaking at 23,174 million USD in 2022 before slightly decreasing to 21,882 million USD in 2023. This pattern of decrease followed by recovery suggests variable short-term obligations, possibly influenced by operational or market conditions.

Total debt

Total debt followed a somewhat similar fluctuating pattern but with a general downward trend. Debt started at 15,794 million USD in 2015, rising marginally in 2016 and then decreasing notably to 12,141 million USD in 2018. After an increase in 2020 to 15,941 million USD, the debt level steadily reduced again through the subsequent years, reaching 12,355 million USD in 2023. This decline in total debt toward the end of the period indicates efforts to deleverage or improve the company’s debt position.

Total HPE stockholders’ equity

Stockholders’ equity showed a consistent and pronounced downward trend from 2015 to 2020, declining from 33,535 million USD to 16,049 million USD. This represents a significant reduction in shareholders’ net assets over these years. However, starting in 2021, equity began to recover, increasing to 21,971 million USD in 2021, followed by a slight decline in 2022, and then rising again in 2023 to 21,182 million USD. This recovery phase indicates some stabilization or improvement in the company’s equity base after years of reduction.

Overall, the data indicate a company managing its short-term liabilities and total debt with variable but generally decreasing debt levels after 2016, alongside a marked decline in stockholders’ equity through 2020, followed by a gradual recovery. These patterns may reflect underlying strategic financial initiatives or responses to market forces impacting the company’s capital structure and financial health.

The analysis of the financial cash flow activities over the periods observed reveals various fluctuations across operating, investing, and financing activities. There are notable trends and significant shifts in the three cash flow categories that warrant attention.

Net Cash Provided by Operating Activities

This category exhibits variability but generally maintains a positive cash inflow throughout the periods. Starting at $3,661 million in 2015, the cash provided by operations increased significantly to $4,958 million in 2016, followed by a sharp decline to $889 million in 2017. Subsequently, there is a recovery trend with fluctuations, reaching a peak of $5,871 million in 2021 before slightly decreasing to $4,428 million in 2023. This pattern suggests intermittent operational challenges but a broadly resilient core cash-generating capability.

Net Cash (Used in) Provided by Investing Activities

Investing activities predominantly demonstrate net cash outflows, indicative of ongoing investments or asset purchases. In 2015, there was a substantial outflow of $5,413 million. The year 2016 shows an anomaly with a positive inflow of $419 million, possibly due to asset sales or reduced investment. However, subsequent years revert to significant outflows, with peaks at $4,907 million in 2017 and another substantial $3,284 million outflow in 2023. This consistent cash usage in investing activities suggests sustained capital expenditure or acquisition strategies.

Net Cash Provided by (Used in) Financing Activities

This category is characterized by considerable volatility and swings between inflows and outflows. The year 2015 witnessed a strong inflow of $9,275 million, possibly linked to capital raising or debt issuance. This was followed by a large outflow of $2,232 million in 2016 and fluctuating amounts in the subsequent years, including significant outflows in 2018 (-$5,592 million) and intermittent inflows. The persistent negative values in recent years indicate repayments, dividends, or share buybacks predominating over new financing activities.

Overall, operational cash flow shows robustness despite periodic downturns, investing activities consistently consume cash reflecting investment commitments, and financing activities present a pattern of leveraging followed by deleveraging. These trends align with a strategic focus on investment supported by strong operational income while managing financing costs and obligations carefully over time.

The financial performance over the reported periods reflects notable volatility in earnings per share (EPS) alongside relatively stable dividend payouts. Both basic and diluted EPS experienced significant fluctuations, indicating variations in profitability.

Earnings Per Share (EPS)

Basic EPS started at 1.36 US$ in 2015 and peaked at 1.84 US$ in 2016. Subsequently, it dropped sharply to 0.21 US$ in 2017, showing a considerable decline in profitability. The EPS rebounded to 1.25 US$ in 2018 but decreased again to 0.78 US$ in 2019. In 2020, the company recorded a negative EPS of -0.25 US$, indicating a net loss during this period. A strong recovery was observed in 2021 with EPS at 2.62 US$, the highest in the dataset. However, EPS fell to 0.67 US$ in 2022 before improving moderately to 1.56 US$ in 2023.

Diluted EPS follows a similar pattern, with values slightly lower than basic EPS but showing the same trend of rise, sharp fall, recovery, and subsequent variations. Starting at 1.34 US$ in 2015 and peaking in 2016 at 1.82 US$, it plunged sharply in 2017 to 0.21 US$, then reflected the same recovery and fluctuations as basic EPS through to 2023.

Dividend Per Share

Dividend payments began being recorded from 2016 at 0.22 US$, gradually increasing to 0.26 US$ in 2017 and 0.49 US$ in 2018. A slight decrease occurred in 2019 to 0.46 US$ and a more marked reduction to 0.36 US$ in 2020, aligning with the negative earnings reported that year. Dividends increased again to 0.48 US$ in both 2021 and remained steady at this level through 2022 and 2023, indicating a relatively stable dividend policy following the earnings recovery.

Overall, the data reveals a cyclical pattern in profitability with periods of earnings decline and recovery. The negative EPS in 2020 reflects a challenging period, potentially linked to broader economic conditions that year. Despite fluctuations in EPS, the company maintained dividend payments with moderate adjustments, suggesting a commitment to returning value to shareholders even during profitability downturns. The strong rebound in earnings in 2021 followed by some volatility indicates ongoing operational or market challenges affecting consistent profitability in the subsequent periods.