Hewlett Packard Enterprise Co (HPE)
Payables 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 |
| Payables | US$ in thousands | 8,125,000 | 7,136,000 | 5,604,000 | 5,501,000 | 6,535,000 | 8,717,000 | 6,861,000 | 5,671,000 | 6,549,000 | 7,004,000 | 6,526,000 | 5,533,000 | 5,196,000 | 5,383,000 | 6,001,000 | 5,482,000 | 5,332,000 | 5,595,000 | 5,203,000 | 5,483,000 |
| Payables turnover | 0.76 | 0.86 | 1.22 | 1.21 | 1.04 | 0.76 | 0.84 | 1.03 | 0.86 | 0.81 | 1.39 | 1.62 | 1.87 | 1.82 | 1.60 | 1.87 | 1.80 | 1.71 | 2.20 | 2.93 |
January 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $6,195,000K ÷ $8,125,000K
= 0.76
Hewlett Packard Enterprise Co's payables turnover ratio has fluctuated over the past eight quarters, ranging from a low of 2.14 in Q4 2022 to a high of 3.48 in Q2 2023. The trend indicates an increasing efficiency in managing their accounts payables, as the ratio has generally been on an upward trajectory. This suggests that the company is taking longer to pay its vendors, which can be beneficial from a working capital management perspective. However, a very high payables turnover ratio could also indicate potential cash flow issues or strained supplier relationships. Overall, a payables turnover ratio of around 2-3 times per year is considered healthy in most industries, striking a balance between efficient cash flow management and maintaining positive supplier relationships. It would be important to monitor this ratio in future quarters to assess any significant changes in the company's payables management strategy.
Peer comparison
Jan 31, 2024
See also:
Hewlett Packard Enterprise Co Payables Turnover (Quarterly Data)