Hewlett Packard Enterprise Co (HPE)
Payables 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 |
| Payables | US$ in thousands | 11,064,000 | 10,085,000 | 10,119,000 | 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 |
| Payables turnover | 0.55 | 0.61 | 0.61 | 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 |
October 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $6,042,000K ÷ $11,064,000K
= 0.55
Hewlett Packard Enterprise Co's payables turnover ratio has shown fluctuation over the past few years. The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the cost of goods sold to average accounts payable. A higher ratio generally indicates that the company is paying its suppliers more quickly.
Looking at the data provided, we can observe that the payables turnover ratio for HPE has ranged from 0.55 to 1.87 over the past 20 quarters. The ratio was lowest at 0.55 in October 2024 and highest at 1.87 in January 2021.
The trend in the payables turnover ratio shows some variability, with periods of lower and higher ratios. Generally, a declining trend in the payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could potentially strain relationships with suppliers or indicate liquidity issues. Conversely, an increasing trend could indicate better cash flow management and stronger supplier relationships.
Therefore, based on the historical data provided, it is important for stakeholders to closely monitor HPE's payables turnover ratio to assess the company's efficiency in managing its accounts payable and its overall financial health.
Peer comparison
Oct 31, 2024
See also:
Hewlett Packard Enterprise Co Payables Turnover (Quarterly Data)