Hewlett Packard Enterprise Co (HPE)
Inventory turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,195,000 | 6,679,000 | 5,703,000 | 6,442,000 | 6,442,000 |
| Inventory | US$ in thousands | 4,607,000 | 5,161,000 | 4,511,000 | 2,674,000 | 2,387,000 |
| Inventory turnover | 1.34 | 1.29 | 1.26 | 2.41 | 2.70 |
October 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,195,000K ÷ $4,607,000K
= 1.34
Hewlett Packard Enterprise Co's inventory turnover has fluctuated in recent years, averaging 5.12 over the past five years. The company's inventory turnover decreased from 8.10 in 2019 to 4.02 in 2023. This may indicate that the company is holding inventory for a longer period, which could be a potential concern as it ties up working capital and increases the risk of obsolescence. Further investigation into the reasons behind this decline is warranted to assess the efficiency of the company's inventory management.
Peer comparison
Oct 31, 2023
Company name
Symbol
Inventory turnover
Hewlett Packard Enterprise Co
HPE
1.34
HP Inc
HPQ
6.15
International Business Machines
IBM
23.74