Total Asset Turnover
since 2015
Calculation
Hewlett Packard Enterprise Co., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Net revenue1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Oct 31, 2023 | 0.51 | = | 29,135) | ÷ | 57,153) |
| Oct 31, 2022 | 0.50 | = | 28,496) | ÷ | 57,123) |
| Oct 31, 2021 | 0.48 | = | 27,784) | ÷ | 57,699) |
| Oct 31, 2020 | 0.50 | = | 26,982) | ÷ | 54,015) |
| Oct 31, 2019 | 0.56 | = | 29,135) | ÷ | 51,803) |
| Oct 31, 2018 | 0.56 | = | 30,852) | ÷ | 55,493) |
| Oct 31, 2017 | 0.47 | = | 28,871) | ÷ | 61,406) |
| Oct 31, 2016 | 0.63 | = | 50,123) | ÷ | 79,679) |
| Oct 31, 2015 | 0.64 | = | 52,107) | ÷ | 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
An analysis of the financial performance from 2015 to 2023 reveals a general decline and subsequent stabilization in asset utilization efficiency. The total asset turnover ratio, which measures the company's ability to generate revenue from its asset base, shifted from a peak of 0.64 in 2015 to a relatively stable range around 0.50 in the latter years of the period.
- Revenue and Asset Base Contraction
- A significant structural shift occurred between 2016 and 2017, characterized by a sharp decrease in both net revenue and total assets. Net revenue fell from 50,123 million USD in 2016 to 28,871 million USD in 2017, while total assets decreased from 79,679 million USD to 61,406 million USD. The disproportionate decline in revenue relative to assets resulted in a sharp drop in the total asset turnover ratio from 0.63 to 0.47 during this timeframe.
- Asset Turnover Volatility and Recovery
- Following the 2017 low, a temporary recovery in efficiency was observed in 2018 and 2019, where the ratio rose to 0.56. This improvement was driven by a moderate increase in net revenue coinciding with a continued reduction in the total asset base, which reached its lowest point of 51,803 million USD in 2019.
- Recent Stabilization Trends
- From 2020 through 2023, the total asset turnover ratio entered a period of relative stability, fluctuating within a narrow band between 0.48 and 0.51. During this interval, net revenue remained consistent, hovering between 26,982 million USD and 29,135 million USD, while total assets plateaued near 57,000 million USD. This indicates a consistent, albeit lower, level of asset productivity compared to the 2015-2016 period.
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Comparison to Competitors
Hewlett Packard Enterprise Co., total asset turnover, 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 | 0.51 | 1.09 | 0.59 | 0.56 | 1.14 | 0.38 | 1.94 |
| Oct 31, 2022 | 0.50 | 1.12 | 0.65 | 0.55 | 1.09 | 0.41 | 1.62 |
| Oct 31, 2021 | 0.48 | 1.04 | 0.51 | 0.51 | 0.76 | 0.49 | 1.59 |
| Oct 31, 2020 | 0.50 | 0.85 | 0.49 | 0.52 | 0.78 | 0.51 | 1.74 |
| Oct 31, 2019 | 0.56 | 0.77 | 0.58 | 0.53 | 0.81 | 0.58 | 2.08 |
| Oct 31, 2018 | 0.56 | 0.73 | 0.70 | 0.45 | — | 0.79 | 1.90 |
| Oct 31, 2017 | 0.47 | 0.61 | 0.67 | 0.37 | — | 0.81 | 1.64 |
| Oct 31, 2016 | 0.63 | 0.67 | 0.65 | 0.40 | — | 1.24 | 1.90 |
| Oct 31, 2015 | 0.64 | 0.80 | 0.72 | 0.43 | — | 1.63 | 1.83 |
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., total asset turnover, long-term trends, comparison to sector (technology hardware & equipment)
| Hewlett Packard Enterprise Co. | Technology Hardware & Equipment | |
|---|---|---|
| Oct 31, 2023 | 0.51 | 0.99 |
| Oct 31, 2022 | 0.50 | 1.01 |
| Oct 31, 2021 | 0.48 | 0.89 |
| Oct 31, 2020 | 0.50 | 0.77 |
| Oct 31, 2019 | 0.56 | 0.74 |
| Oct 31, 2018 | 0.56 | 0.67 |
| Oct 31, 2017 | 0.47 | 0.55 |
| Oct 31, 2016 | 0.63 | 0.60 |
| Oct 31, 2015 | 0.64 | 0.70 |
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., total asset turnover, long-term trends, comparison to industry (information technology)
| Hewlett Packard Enterprise Co. | Information Technology | |
|---|---|---|
| Oct 31, 2023 | 0.51 | 0.61 |
| Oct 31, 2022 | 0.50 | 0.64 |
| Oct 31, 2021 | 0.48 | 0.62 |
| Oct 31, 2020 | 0.50 | 0.58 |
| Oct 31, 2019 | 0.56 | 0.59 |
| Oct 31, 2018 | 0.56 | 0.59 |
| Oct 31, 2017 | 0.47 | 0.51 |
| Oct 31, 2016 | 0.63 | 0.55 |
| Oct 31, 2015 | 0.64 | 0.63 |
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).