Hewlett Packard Enterprise Co (HPE)
Payables 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 |
| Payables | US$ in thousands | 7,136,000 | 8,717,000 | 7,004,000 | 5,383,000 | 5,595,000 |
| Payables turnover | 0.87 | 0.77 | 0.81 | 1.20 | 1.15 |
October 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,195,000K ÷ $7,136,000K
= 0.87
The payables turnover ratio measures how efficiently a company manages its trade payables by indicating the number of times during a period that it pays off its average accounts payable balance. A higher ratio suggests more efficient management of payables, while a lower ratio may indicate a potential liquidity issue.
Hewlett Packard Enterprise Co's payables turnover has fluctuated over the past five years. In 2023, the payables turnover ratio increased to 2.59 from 2.14 in 2022, indicating an improvement in the management of trade payables. However, this ratio is still below the 2020 and 2019 levels, which were 3.39 and 3.46, respectively.
The decrease in the payables turnover ratio from 2020 to 2022 and the subsequent increase in 2023 may suggest fluctuations in the company's payment practices or changes in its supplier relationships. These variations could be influenced by shifts in the company's purchasing patterns, negotiation of credit terms, or changes in operating activities.
Overall, a closer examination of the underlying factors influencing Hewlett Packard Enterprise Co's payables turnover ratio would be necessary to provide a more comprehensive analysis. Additionally, comparing this ratio with industry benchmarks and the company's historical performance can provide further insights into its financial management and operational efficiency.
Peer comparison
Oct 31, 2023