Hewlett Packard Enterprise Co (HPE)
Inventory turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,065,000 | 6,195,000 | 6,679,000 | 5,703,000 | 6,442,000 |
| Inventory | US$ in thousands | 7,810,000 | 4,607,000 | 5,161,000 | 4,511,000 | 2,674,000 |
| Inventory turnover | 0.78 | 1.34 | 1.29 | 1.26 | 2.41 |
October 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,065,000K ÷ $7,810,000K
= 0.78
Hewlett Packard Enterprise Co's inventory turnover has exhibited a declining trend over the past five years. The company's inventory turnover ratio was 0.78 for the fiscal year ending October 31, 2024, indicating that the company was able to turn its inventory into sales just 0.78 times during the year. This represents a significant drop from the previous year's ratio of 1.34.
The decreasing trend in inventory turnover could suggest potential issues such as overstocking, obsolete inventory, or challenges in managing inventory levels efficiently. A lower inventory turnover ratio may indicate that the company is struggling to sell its products, leading to excess inventory levels.
It is essential for Hewlett Packard Enterprise Co to closely monitor its inventory management practices to improve its inventory turnover ratio. This could involve optimizing production processes, implementing effective inventory control systems, and closely monitoring supply chain dynamics. By enhancing inventory turnover, the company can boost its liquidity, reduce carrying costs, and improve overall operational efficiency.
Peer comparison
Oct 31, 2024