Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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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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Profitability Ratios (Summary)
Hewlett Packard Enterprise Co., profitability 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).
- Gross Profit Margin
- The gross profit margin demonstrated a generally upward trend over the observed periods, rising from approximately 30.77% in early 2019 to peaks above 35% by early 2024. There were minor fluctuations through the quarters, with slight declines around mid-2020, but the margin steadily improved afterward, indicating enhanced efficiency in production or pricing power.
- Operating Profit Margin
- The operating profit margin exhibited more volatility compared to the gross margin. It started near 6.68% in early 2019 but declined sharply in 2020, even turning negative in several quarters, reflecting operational challenges or increased expenses during that period. From 2021 onward, the margin improved consistently, reaching above 7% by early 2024, suggesting recovery and better cost controls or revenue growth at the operating level.
- Net Profit Margin
- Net profit margin showed significant fluctuations over the timeframe. While it was modestly positive in early 2019, the margin encountered negative values in 2019 and 2020, indicating periods of net losses or very thin profitability. Notably, the margin spiked substantially in 2021, reaching over 13%, likely due to exceptional gains or improved tax and financing conditions. Despite some decline afterward, the margin stabilized around 6-7% in 2023 through early 2024, pointing towards a moderate, consistent profitability.
- Return on Equity (ROE)
- ROE followed a pattern paralleling the net profit margin, with some negative quarters in 2019 and 2020. Starting from a modest level, it surged remarkably in 2021, surpassing 18%, which indicates highly effective returns to shareholders during that period, potentially driven by profitability or share buybacks. In recent quarters, ROE moderated to roughly 8-9%, which still represents a decent return but lower than the peak, reflecting a normalization phase.
- Return on Assets (ROA)
- ROA remained relatively low throughout the periods, often below 2% in the earlier years and entering negative territory at times in 2019 and 2020. A noticeable improvement occurred in 2021, with ROA increasing to above 6%, suggesting better efficiency in asset utilization. Since then, ROA stabilized around 3%, indicating average returns on total asset investments compared to earlier volatile performance.
Return on Sales
Return on Investment
Gross Profit Margin
Hewlett Packard Enterprise Co., gross profit margin 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) | |||||||||||||||||||||||||||||
| Gross profit | |||||||||||||||||||||||||||||
| Net revenue | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Gross Profit Margin, 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
Gross profit margin = 100
× (Gross profitQ2 2024
+ Gross profitQ1 2024
+ Gross profitQ4 2023
+ Gross profitQ3 2023)
÷ (Net revenueQ2 2024
+ Net revenueQ1 2024
+ Net revenueQ4 2023
+ Net revenueQ3 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Revenue
-
The net revenue exhibits a fluctuating trend over the observed periods. Starting from a peak of approximately $7.55 billion in January 2019, revenue experienced notable declines, reaching a low point around April 2020 at about $6.01 billion, likely reflecting external market pressures during that time. Subsequently, a recovery phase is observed, with revenue increasing to levels near $7.87 billion by October 2022. However, the data indicates recurring volatility, with net revenue dropping again to approximately $6.75 billion in January 2024 before showing signs of stabilization or slight recovery by April 2024. Overall, the trend reveals cyclical fluctuations with interim recoveries but no sustained upward trajectory across the entire timeframe.
- Gross Profit
-
Gross profit shows a pattern broadly aligned with net revenue, though the magnitude of fluctuations appears somewhat less pronounced. Beginning at around $2.35 billion in January 2019, gross profit declined steadily to a low near $1.91 billion in April 2020, coincident with the bottom in net revenue. Following this, an upward movement occurred, with gross profit reaching a peak of about $2.59 billion by October 2022. Nevertheless, the values thereafter demonstrate some volatility, with gross profit decreasing to roughly $2.38 billion by April 2024. This pattern suggests that while gross profit largely follows the revenue trend, operational efficiencies or cost management strategies might have contributed to sustaining profitability despite revenue variability.
- Gross Profit Margin (%)
-
The gross profit margin indicates a generally positive and improving trend throughout the periods reviewed. Initially around 30.77% in January 2019, the margin increased steadily, surpassing 33% by early 2020 and continuing to improve thereafter. Notably, from around January 2021 onwards, the margin consistently exceeds 33%, climbing as high as approximately 35.75% by January 2024. This upward movement suggests enhanced pricing power, improved cost efficiencies, or a favorable product mix contributing to a higher proportion of revenue being retained as gross profit. The increasing margin trends can be interpreted as a strengthening of the company’s core profitability despite fluctuations in absolute revenue and gross profit.
- Summary Insights
-
The financial data reflects cycles of contraction and recovery in revenue and gross profit, with a significant dip in early 2020 followed by successive recovery phases. Importantly, the gross profit margin has progressively improved over time, indicating successful margin management and potentially effective strategic adjustments. This enhancement in gross profit margin supports profitability resilience even amidst revenue volatility. Overall, the data suggests that while the company faces challenges in maintaining steady top-line growth, it has increasingly managed to optimize operations to sustain and improve profitability levels.
Operating Profit Margin
Hewlett Packard Enterprise Co., operating profit margin 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) | |||||||||||||||||||||||||||||
| Earnings (loss) from operations | |||||||||||||||||||||||||||||
| Net revenue | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Profit Margin, 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
Operating profit margin = 100
× (Earnings (loss) from operationsQ2 2024
+ Earnings (loss) from operationsQ1 2024
+ Earnings (loss) from operationsQ4 2023
+ Earnings (loss) from operationsQ3 2023)
÷ (Net revenueQ2 2024
+ Net revenueQ1 2024
+ Net revenueQ4 2023
+ Net revenueQ3 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Revenue Trends
- The net revenue exhibits fluctuations over the analyzed periods without a clear long-term upward or downward trajectory. It peaked notably in October 2022 with a value of 7,871 million USD and reached several troughs, including 6,009 million USD in April 2020 and 6,700 million USD in April 2021. The general pattern indicates cyclic variability, possibly reflecting seasonal or market factors that influence quarterly sales performance.
- Earnings from Operations
- Earnings from operations show significant volatility across the quarters. Periods such as July 2019 and October 2022 exhibit losses of 76 million USD and 339 million USD respectively, while other quarters, for example January 2024 and July 2023, demonstrate strong operational earnings exceeding 500 million USD. This fluctuation suggests inconsistent operational efficiency or varying external impacts such as market conditions or cost structure changes affecting profitability.
- Operating Profit Margin
- The operating profit margin demonstrates a mixed performance pattern. It maintained generally positive margins above 4% for many quarters but experienced negative margins primarily in the period spanning from April 2020 to October 2020, with the lowest margin at -1.69% in January 2021. From 2021 onward, margins show progressive improvement, achieving peak levels above 7% in the most recent periods analyzed. This improvement indicates enhanced operational profitability and potentially better cost management or increased revenue quality in recent quarters.
- Interrelations and Insights
- While net revenue remains somewhat stable with moderate fluctuations, earnings from operations fluctuate more widely, indicating that revenue levels alone do not guarantee consistent profitability. The period of negative operating profit margins around 2020 coincides with sharply reduced earnings and may reflect extraordinary challenges or restructuring phases. The positive trajectory in operating margins since 2021 coupled with recovering and increasing operational earnings suggests a turnaround or strategic improvements being effective over time.
Net Profit Margin
Hewlett Packard Enterprise Co., net profit margin 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) | |||||||||||||||||||||||||||||
| Net earnings (loss) attributable to HPE | |||||||||||||||||||||||||||||
| Net revenue | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Profit Margin, 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
Net profit margin = 100
× (Net earnings (loss) attributable to HPEQ2 2024
+ Net earnings (loss) attributable to HPEQ1 2024
+ Net earnings (loss) attributable to HPEQ4 2023
+ Net earnings (loss) attributable to HPEQ3 2023)
÷ (Net revenueQ2 2024
+ Net revenueQ1 2024
+ Net revenueQ4 2023
+ Net revenueQ3 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Earnings (Loss) Attributable to HPE
- The net earnings over the period display notable volatility with substantial fluctuations from positive to negative values and vice versa. Initially, earnings were positive, peaking at 419 million USD in April 2019, followed by a significant loss of 821 million USD in April 2020. Post this deep loss, earnings show recovery and growth, reaching a peak of 2,553 million USD in October 2021. Subsequent quarters exhibit variability, with declines and recoveries alternating; notably, there was a loss again in October 2022 (-304 million USD) but earnings consistently returned to positive figures afterward, demonstrating resilience and recovery trends into early 2024.
- Net Revenue
- Net revenue exhibits relative stability with moderate fluctuations within a range approximately between 6,000 million USD and 7,800 million USD across the examined periods. Revenue dropped noticeably in the early quarters of 2020, coinciding with the period of significant negative earnings, suggesting external or operational impacts. After the mid-2020 low point, revenue steadily increased, attaining a high point in the fourth quarter of 2022 at 7,871 million USD. Recent quarters show a slight decline but still maintain revenue above 6,700 million USD, indicating a generally steady top line performance with episodic variances.
- Net Profit Margin
- The net profit margin follows the fluctuations seen in net earnings, displaying periods of loss and gain. Margins were modestly positive in early 2019 but dropped to negative levels in some quarters of 2019 and 2020, reaching the lowest point at -1.61% in January 2021. From late 2020 through 2021, margins improved significantly, peaking above 13% in early 2022, indicating enhanced profitability during these quarters. However, post-peak, margins reverted closer to the 3-7% range. The data reveals cyclicality but with an overall improvement in profitability margins during the latter periods, suggesting improved operational efficiency or favorable market conditions.
- Overall Analysis
- The financial data illustrates a period marked by considerable earnings volatility and external challenges affecting profitability, particularly in early 2020. Despite this, the company demonstrated strong recovery in both earnings and profit margins by late 2021 and early 2022. Revenue trends remained relatively stable with some growth phases, contributing to improved profit margins during peak periods. The pattern of swings in net earnings and profit margins suggests sensitivity to market or operational disruptions but also indicates successful mitigation and recovery efforts leading to sustained positive financial outcomes through early 2024.
Return on Equity (ROE)
Hewlett Packard Enterprise Co., ROE 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) | |||||||||||||||||||||||||||||
| Net earnings (loss) attributable to HPE | |||||||||||||||||||||||||||||
| Total HPE stockholders’ equity | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROE1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROE, 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
ROE = 100
× (Net earnings (loss) attributable to HPEQ2 2024
+ Net earnings (loss) attributable to HPEQ1 2024
+ Net earnings (loss) attributable to HPEQ4 2023
+ Net earnings (loss) attributable to HPEQ3 2023)
÷ Total HPE stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in earnings, equity, and return on equity (ROE) over the observed periods.
- Net Earnings
- Net earnings attributable to the company have demonstrated significant variability throughout the quarters. Initial quarters show positive earnings with a peak of 419 million US dollars in April 2019, followed by a marked loss of 821 million in April 2020. After recovering to positive earnings subsequently, a notable spike occurs in October 2021 where net earnings reach 2,553 million, marking the highest point in the observed timeframe. Following this peak, earnings experienced fluctuations but generally maintained positive territory, with occasional declines such as a loss in October 2022. The most recent quarters indicate consistent positive earnings, culminating in 314 million in April 2024.
- Total Stockholders’ Equity
- Total stockholders’ equity shows a declining trend from January 2019 through October 2020, decreasing from 18,293 million to approximately 16,049 million US dollars. From late 2020 onward, equity figures stabilized and began a gradual increase, reaching a peak of 21,680 million by April 2024. This recovery suggests improved shareholder value and balance sheet strengthening in recent years.
- Return on Equity (ROE)
- ROE has exhibited considerable fluctuations in line with net earnings and equity changes. Early data show moderate ROE levels, dipping into negative territory during quarters with losses, notably at -2.66% in January 2021. Subsequently, ROE increased significantly, peaking at over 18% during early 2022, corresponding with the period of elevated net earnings. Following this peak, ROE moderated but remained positive, reflecting improved profitability relative to equity levels. The latest data indicate solid ROE figures around 8–9%, suggesting sustained efficient use of shareholder capital.
Overall, the company has experienced periods of volatility in profitability, with substantial recovery and growth in net earnings from late 2020 through early 2022. Equity values have rebounded after earlier declines, contributing to enhanced ROE figures. The financial metrics indicate a strengthening financial position over the most recent quarters, with profitability and equity trends moving favorably.
Return on Assets (ROA)
Hewlett Packard Enterprise Co., ROA 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) | |||||||||||||||||||||||||||||
| Net earnings (loss) attributable to HPE | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROA1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROA, 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
ROA = 100
× (Net earnings (loss) attributable to HPEQ2 2024
+ Net earnings (loss) attributable to HPEQ1 2024
+ Net earnings (loss) attributable to HPEQ4 2023
+ Net earnings (loss) attributable to HPEQ3 2023)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Earnings (Loss) Attributable to HPE
- Net earnings exhibit significant volatility throughout the observed periods, with both positive and negative values. Early years show fluctuations, including losses notably in April 2020 (-821 million USD) and January 2023 (-304 million USD). However, there are instances of substantial gains, especially in October 2021 (2553 million USD). More recent quarters demonstrate a general recovery trend with positive earnings consistently above 300 million USD, peaking at 642 million USD in October 2023. This pattern suggests periods of financial instability punctuated by strong earnings recoveries.
- Total Assets
- Total assets maintain relative stability over the timeframe, ranging mostly between 50 billion and 60 billion USD. A gradual increase is noticeable starting mid-2019, peaking near 58.2 billion USD in July 2020, followed by minor fluctuations around mid-50s billion range. The trend after 2022 leans toward a gradual increase again, reaching the highest value of approximately 59.7 billion USD by April 2024. This indicates stable asset management with slight growth in asset base over time.
- Return on Assets (ROA)
- Return on Assets exhibits a fluctuating but improving trend. Initial values near zero or negative in 2019 and early 2020 coincide with reported losses. Post-2020, ROA reflects a more positive trajectory, reaching a notable peak above 6% between October 2021 and April 2022. After this peak, ROA decreases to mid-single digits but remains positive, with a gradual increase toward 3% levels by early 2024. This pattern aligns with improved earnings performance and effective utilization of assets.
- Overall Analysis
- The financial data reveals a company facing episodic earnings challenges with pronounced losses in certain quarters, particularly during the early COVID period and early 2023, but also capable of achieving strong profitability spikes. Asset levels have remained fairly steady, supporting operational capacity without drastic expansion or contraction. The improvement and relative stability in ROA from 2021 onwards suggest enhanced operational efficiency and profitability management. The company appears to be in a phase of recovery and moderate growth post-2020 downturns, showing resilience and improving returns on invested assets.