Hewlett Packard Enterprise Co (HPE)
Inventory turnover
| Oct 31, 2024 | Jul 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 6,042,000 | 6,184,000 | 6,198,000 | 6,195,000 | 6,172,000 | 6,840,000 | 6,671,000 | 6,765,000 | 6,644,000 | 5,763,000 | 5,840,000 | 5,631,000 | 5,662,000 | 9,090,000 | 8,962,000 | 9,742,000 | 9,798,000 | 9,618,000 | 10,274,000 | 9,586,000 |
| Inventory | US$ in thousands | 7,810,000 | 7,679,000 | 7,300,000 | 6,049,000 | 4,607,000 | 4,541,000 | 4,317,000 | 4,644,000 | 5,161,000 | 5,554,000 | 5,322,000 | 5,321,000 | 4,511,000 | 3,942,000 | 3,117,000 | 2,791,000 | 2,674,000 | 3,469,000 | 3,476,000 | 2,560,000 |
| Inventory turnover | 0.77 | 0.81 | 0.85 | 1.02 | 1.34 | 1.51 | 1.55 | 1.46 | 1.29 | 1.04 | 1.10 | 1.06 | 1.26 | 2.31 | 2.88 | 3.49 | 3.66 | 2.77 | 2.96 | 3.74 |
October 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,042,000K ÷ $7,810,000K
= 0.77
Hewlett Packard Enterprise Co's inventory turnover has shown some fluctuations over the past few years, indicating changes in the company's efficiency in managing its inventory levels. The inventory turnover ratio measures how many times a company sells and replaces its inventory within a given period.
From January 2020 to July 2021, the inventory turnover ratio ranged between 2.31 and 1.04, indicating a relatively stable performance in managing inventory during this period. However, a significant increase was observed in the inventory turnover ratio from April 2021 to July 2022, reaching a peak of 3.74. This surge suggests that the company was able to sell and replace its inventory at a faster rate during this period.
Subsequently, from October 2022 to July 2023, the inventory turnover ratio declined but remained above 1, indicating that the company was still effectively managing its inventory levels. However, there was a noticeable decrease in inventory turnover from January 2024 to October 2024, with the ratio dropping to as low as 0.77. This decline may indicate potential challenges in efficiently selling and replacing inventory during this period.
Overall, Hewlett Packard Enterprise Co's inventory turnover ratio has exhibited both strengths and weaknesses in managing inventory efficiency over the analyzed period. It would be essential for the company to closely monitor its inventory levels and sales performance to optimize inventory turnover and improve overall operational efficiency.
Peer comparison
Oct 31, 2024
Oct 31, 2024
See also:
Hewlett Packard Enterprise Co Inventory Turnover (Quarterly Data)