Hewlett Packard Enterprise Co (HPE)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 9,594,000 | 11,457,000 | 16,041,000 |
| Inventory | US$ in thousands | 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 | 2,387,000 | 2,216,000 | 2,182,000 |
| Inventory turnover | 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 | 4.02 | 5.17 | 7.35 |
January 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,195,000K ÷ $6,049,000K
= 1.02
Hewlett Packard Enterprise Co's inventory turnover has exhibited fluctuations in recent quarters. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times per period the company sells and replaces its inventory.
In Q1 2024, the inventory turnover ratio was 2.91, which indicates that the company's inventory took approximately 2.91 quarters to be sold and replaced. This represents a decrease from the previous quarter's figure of 4.02, suggesting a slower turnover of inventory.
Looking at the trend over the past eight quarters, the inventory turnover ratio peaked in Q2 2023 at 4.44, showing that the company was managing its inventory more effectively during that period. However, there was a decline in the subsequent quarters.
Overall, Hewlett Packard Enterprise Co should aim to maintain a balance in managing its inventory levels to ensure that it is neither overstocked nor facing shortages that can impact its operations and profitability. Monitoring and improving inventory turnover can help the company optimize its working capital and enhance its overall efficiency in the supply chain.
Peer comparison
Jan 31, 2024
Jan 31, 2024
See also:
Hewlett Packard Enterprise Co Inventory Turnover (Quarterly Data)