Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Earnings (P/E) since 2015
- Analysis of Debt
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Liquidity Ratios (Summary)
Hewlett Packard Enterprise Co., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-K (reporting date: 2019-10-31), 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31).
- Current Ratio
- The current ratio demonstrates moderate fluctuations over the observed periods, indicating variability in the company's short-term liquidity position. Starting at 0.94 in January 2019, the ratio declined to a low of 0.79 by October 2019, but then rebounded to near parity around 0.99 in mid-2020. Subsequently, the trend shows modest oscillations generally ranging between 0.85 and 0.95 through early 2024, with a slight downward tendency in the latter periods, ending at 0.90 in April 2024. Overall, the current ratio remains below 1 throughout, suggesting that current liabilities consistently exceed current assets, which may imply cautious management of working capital or liquidity constraints.
- Quick Ratio
- The quick ratio, which excludes inventory from current assets, follows a pattern similar to the current ratio but at lower levels, reflecting tighter liquidity when considering only the most liquid assets. Beginning at 0.63 in early 2019, the ratio trends downward with some volatility, reaching a trough around 0.49 to 0.50 in multiple quarters from mid-2021 through 2023. A notable decline occurs toward 0.43 in April 2024, the lowest value observed in the data set. This gradual decrease indicates a reduction in readily available liquid assets relative to current liabilities, signaling increased liquidity pressure or a shift in asset composition over time.
- Cash Ratio
- The cash ratio, the most conservative liquidity measure, exhibits pronounced variability with values generally under 0.3. Early 2019 levels near 0.23 decrease slightly before a peak of 0.39 in mid-2020, potentially reflecting a temporary strengthening in cash reserves during that period. Following this peak, the ratio undergoes a steady decline with minor recoveries, reaching a low of 0.11 by April 2024. This declining trend suggests that cash and cash equivalents relative to current liabilities have diminished over time, which could heighten liquidity risk if immediate obligations arise.
Collectively, the liquidity ratios portray a company consistently managing liquidity below the threshold of one, with the quick and cash ratios indicating tightening liquidity conditions over the reported intervals. This pattern may warrant ongoing monitoring to ensure sufficient liquidity to meet short-term commitments.
Current Ratio
Hewlett Packard Enterprise Co., current ratio calculation (quarterly data)
| Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | Jan 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Current ratio1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-K (reporting date: 2019-10-31), 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31).
1 Q2 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets showed fluctuations over the observed periods. Initially, the values hovered around 15 billion US dollars, with minor increases and decreases until mid-2020. A notable peak occurred in July 2020, reaching over 21 billion US dollars. Following this, current assets generally maintained elevated levels compared to earlier years, with values regularly staying between approximately 18 and 20 billion US dollars. The most recent data points indicate a continuing upward trend, reaching over 21 billion US dollars by April 2024.
- Current Liabilities
- Current liabilities demonstrated an overall increasing trend throughout the periods. Starting at around 16.5 billion US dollars, liabilities steadily rose, peaking at over 23 billion US dollars by April 2024. Short-term increases were observed, particularly from late 2019 through 2020, with some volatility but a general pattern of growth. The liabilities consistently remained higher than current assets, affecting liquidity ratios.
- Current Ratio
- The current ratio exhibited persistent weakness, reflecting the relationship between current assets and current liabilities. Values consistently remained below 1.0, indicating that current liabilities exceeded current assets in almost all periods. The ratio fluctuated mostly between 0.79 and 0.95, with slight improvements around mid-2020 and early 2021, nearing 1.0 briefly. However, this was not sustained, and the ratio decreased again in subsequent periods, with the latest figures close to 0.9. The consistent sub-1 ratio signals ongoing pressure on short-term liquidity and potential challenges in covering short-term obligations solely with current assets.
Quick Ratio
Hewlett Packard Enterprise Co., quick ratio calculation (quarterly data)
| Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | Jan 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||||||||
| Accounts receivable, net of allowances | |||||||||||||||||||||||||||||
| Financing receivables, net of allowances | |||||||||||||||||||||||||||||
| Total quick assets | |||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Quick ratio1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-K (reporting date: 2019-10-31), 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31).
1 Q2 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Trend in Total Quick Assets
- The total quick assets exhibit fluctuations across the observed periods. Initially, there is a slight decrease from early 2019 into early 2020, followed by a noticeable increase peaking around mid-2020. Subsequently, the total quick assets decline through 2022, with some recovery visible in late 2022 to early 2023, but the overall trend shows variability without a consistent upward or downward direction. In the most recent quarters of 2023 and early 2024, total quick assets appear to decline again.
- Trend in Current Liabilities
- Current liabilities demonstrate a general upward trend over the time frame. Starting from approximately 16,459 million USD in early 2019, current liabilities steadily increase with some periodic fluctuations, reaching above 23,750 million USD by early 2024. This consistent rise suggests an increasing short-term obligation load over the period analyzed.
- Trend in Quick Ratio
- The quick ratio remains below 1 throughout the entire period, indicating that quick assets consistently fall short of covering current liabilities fully. The ratio starts around 0.63 in early 2019, declines to a low point near 0.43 by early 2024, signifying a weakening liquidity position. There are short-term improvements, such as mid-2020 when the ratio rose to 0.7, but the prevailing pattern is a gradual decrease over the years, reflecting a growing imbalance where liabilities are increasing faster than liquid assets.
- Overall Analysis
- Overall, the data indicates a company facing rising short-term liabilities with fluctuating but generally insufficient liquid assets to cover these liabilities comfortably. The gradual decline in the quick ratio points to a potential liquidity risk, as the company's quick assets are not increasing in tandem with its current liabilities. The peaks and troughs in quick assets may reflect episodic cash management or asset adjustments, but the persistent increase in short-term obligations and the dropping quick ratio suggest caution in terms of near-term financial flexibility and solvency.
Cash Ratio
Hewlett Packard Enterprise Co., cash ratio calculation (quarterly data)
| Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | Jan 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||||||||
| Total cash assets | |||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Cash ratio1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-04-30), 10-Q (reporting date: 2024-01-31), 10-K (reporting date: 2023-10-31), 10-Q (reporting date: 2023-07-31), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-31), 10-K (reporting date: 2022-10-31), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-31), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-04-30), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-04-30), 10-Q (reporting date: 2020-01-31), 10-K (reporting date: 2019-10-31), 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31).
1 Q2 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total cash assets
-
The total cash assets exhibit pronounced fluctuations throughout the observed period. Initial values in early 2019 remain relatively stable around 3,700 million US dollars, followed by a marked increase peaking at approximately 8,465 million US dollars in mid-2020. Subsequently, cash assets decline sharply towards the end of 2020 and the first half of 2022, reaching levels near 3,000 million US dollars. The later periods show variability with another dip in early 2023, followed by a recovery in late 2023, and a final decrease by mid-2024 to a value below 2,700 million US dollars. Overall, cash assets do not maintain a steady trend but rather show a series of rises and falls, indicating potential strategic cash management or responses to external factors.
- Current liabilities
-
Current liabilities demonstrate a generally upward trajectory over the full time frame. Beginning from about 16,459 million US dollars in early 2019, liabilities rise steadily with some short-term fluctuations. Notable increases occur from early 2020 onwards, with values escalating to roughly 23,750 million US dollars by the second quarter of 2024. The movement suggests an increasing reliance on short-term obligations or increased operational funding requirements, coinciding with overall business activities or market conditions evolving over time.
- Cash ratio
-
The cash ratio, measuring the company's liquidity by comparing cash assets to current liabilities, fluctuates within a low range throughout the period. Initial ratios hover around 0.22, indicating that cash assets cover approximately 22% of current liabilities. The ratio peaks at 0.39 in mid-2020, corresponding with the highest cash assets level, and then declines substantially afterward. From early 2022 onwards, the ratio mostly stays below 0.20, with a nadir of 0.11 by mid-2024. This trend highlights a decreasing liquidity buffer relative to current liabilities, signaling tighter liquidity conditions or more leveraged working capital management in recent periods.