Hewlett Packard Enterprise Co (HPE)
Payables 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 |
| Payables | US$ in thousands | 11,064,000 | 7,136,000 | 8,717,000 | 7,004,000 | 5,383,000 |
| Payables turnover | 0.55 | 0.87 | 0.77 | 0.81 | 1.20 |
October 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,065,000K ÷ $11,064,000K
= 0.55
Hewlett Packard Enterprise Co's payables turnover has been fluctuating over the past five years, ranging from a low of 0.55 in 2024 to a high of 1.20 in 2020. This ratio indicates how many times the company pays off its accounts payable during a specific period. A higher payables turnover ratio typically indicates that the company is managing its payables efficiently by paying off its vendors more quickly.
The decreasing trend in the payables turnover ratio from 2020 to 2024 may suggest that Hewlett Packard Enterprise Co is taking longer to pay its suppliers over the years. A declining payables turnover ratio could imply either less efficient management of payables or potential financial difficulties. It is crucial for the company to monitor this ratio closely and investigate the reasons behind the trend to ensure proper cash flow management and vendor relationships.
Peer comparison
Oct 31, 2024