Hewlett Packard Enterprise Co (HPE)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	0.77	0.81	0.85	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
Receivables turnover	4.06	3.84	3.78	3.79	4.15	4.14	3.99	3.70	6.95	4.01	4.12	3.85	6.98	3.89	4.06	3.94	7.97	4.06	4.39	4.42
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
Working capital turnover	4.03	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Hewlett Packard Enterprise Co's activity ratios indicate the efficiency of its operations in managing its assets and liabilities.

- Inventory turnover has fluctuated over the periods but generally shows a decreasing trend, indicating a decrease in the efficiency of converting inventory into sales.

- Receivables turnover has also varied, with some volatility, showing the number of times receivables are collected during a specific period. The company's collection efficiency appears to have improved in recent periods.

- Payables turnover has fluctuated as well, reflecting the company's ability to pay its suppliers. The decreasing trend in payables turnover suggests a decreasing efficiency in managing payables.

- Working capital turnover was reported for one period only, indicating the company's efficiency in generating sales with working capital resources. No trend analysis can be done without additional data points.

Overall, while the receivables turnover has shown improvements, the company may need to focus on enhancing inventory and payables turnover to optimize its working capital efficiency and overall operational performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	471.81	453.24	429.90	356.40	272.45	242.32	236.20	250.56	283.53	351.76	332.62	344.91	290.80	158.29	126.95	104.57	99.61	131.65	123.49	97.48
Days of sales outstanding (DSO)	days	89.90	95.11	96.51	96.32	88.00	88.20	91.57	98.60	52.53	90.98	88.58	94.77	52.27	93.91	89.82	92.60	45.80	89.98	83.15	82.58
Number of days of payables	days	668.38	595.25	595.91	478.71	422.01	299.04	300.98	352.59	478.88	434.54	354.44	424.50	451.51	262.05	225.35	194.68	200.53	227.74	194.76	203.02

Hewlett Packard Enterprise Co's activity ratios indicate the efficiency of its operations in managing inventory, collecting receivables, and paying suppliers.

1. Days of Inventory on Hand (DOH): The company's DOH has shown an increasing trend over recent quarters, reaching 471.81 days as of October 31, 2024. This suggests that Hewlett Packard Enterprise Co is taking longer to sell its inventory, which could indicate overstocking or slow-moving products. It may lead to higher carrying costs and potential obsolescence risk.

2. Days of Sales Outstanding (DSO): The DSO has fluctuated over the quarters but has generally been relatively stable around the 90-day mark. A lower DSO indicates that the company is collecting receivables more quickly, which is positive as it improves cash flow and reduces the risk of bad debts. However, the DSO has been on the higher side recently, which may require attention to ensure timely collections.

3. Number of Days of Payables: The number of days of payables has been increasing in recent quarters, reaching 668.38 days as of October 31, 2024. This suggests that Hewlett Packard Enterprise Co is taking longer to pay its suppliers, potentially indicating strained supplier relationships or liquidity issues. While delaying payments can improve cash flow in the short term, it could damage supplier relationships in the long run.

Overall, the company may need to address its inventory management to reduce excess stock, focus on improving receivables collection to enhance cash flow, and carefully manage supplier payments to maintain good relationships and avoid liquidity challenges.

Long-term

	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
Fixed asset turnover	5.32	5.06	4.87	4.68	4.86	4.87	4.92	4.90	4.93	4.97	5.07	5.08	4.95	5.02	5.03	4.82	4.80	4.73	4.90	5.00
Total asset turnover	0.42	0.48	0.47	0.48	0.51	0.53	0.53	0.53	0.50	0.49	0.50	0.48	0.48	0.49	0.51	0.50	0.50	0.46	0.50	0.55

Hewlett Packard Enterprise Co's fixed asset turnover has shown a relatively stable trend over the past few quarters, ranging from 4.68 to 5.32. This indicates that the company generates revenue efficiently from its fixed assets, with an average turnover of around 5 times per year.

In comparison, the total asset turnover has fluctuated more, ranging from 0.42 to 0.55 over the same period. This suggests that the company's ability to generate sales from all assets has varied, with a generally decreasing trend observed in recent quarters.

Overall, Hewlett Packard Enterprise Co's fixed asset turnover is consistently higher than its total asset turnover, indicating that the company is effectively utilizing its fixed assets to generate revenue. However, the declining trend in total asset turnover may require further analysis to understand the underlying reasons and potential impacts on the company's long-term performance.