Hewlett Packard Enterprise Co (HPE)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	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	4.02	5.17	7.35
Receivables turnover	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	8.35	8.28	7.43
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
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Hewlett Packard Enterprise Co's inventory turnover has been fluctuating over the past eight quarters, with a downward trend in the most recent quarters. The company's ability to manage its inventory levels efficiently decreased from Q1 2023 to Q1 2024, indicating that it took longer to sell its inventory.

On the other hand, the receivables turnover ratio has been relatively stable, with a slight increase in Q4 2023. This indicates that the company is collecting its accounts receivable at a consistent pace.

In terms of payables turnover, the company's performance has shown variability, with an increasing trend from Q1 2023 to Q3 2023, followed by a slight decline in the last two quarters. This suggests that Hewlett Packard Enterprise Co took longer to pay its suppliers in Q4 2023 and Q1 2024 compared to the previous quarters.

The absence of data for the working capital turnover ratio limits the ability to assess the efficiency of Hewlett Packard Enterprise Co in utilizing its working capital to generate sales. Overall, analyzing these activity ratios can provide insights into the company's operational efficiency and management of its assets and liabilities.

Average number of days

		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
Days of inventory on hand (DOH)	days	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	90.81	70.60	49.65
Days of sales outstanding (DSO)	days	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	43.71	44.07	49.13
Number of days of payables	days	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	212.86	165.76	124.76

Hewlett Packard Enterprise Co's activity ratios indicate how efficiently the company manages its assets and liabilities.

1. Days of Inventory on Hand (DOH):
- The DOH shows that the company took, on average, 125.31 days to sell its inventory in Q1 2024, which is higher compared to the previous quarters. This suggests that the company might be holding excess inventory, potentially leading to increased holding costs and potential obsolescence.

2. Days of Sales Outstanding (DSO):
- The DSO decreased from 52.25 days in Q1 2023 to 49.15 days in Q1 2024, indicating a slight improvement in collecting receivables. Lower DSO means the company is collecting payments from customers more quickly, which is a positive sign.

3. Number of Days of Payables:
- The number of days of payables increased significantly in Q1 2024 compared to the previous quarters, reaching 168.32 days. This indicates that the company is taking longer to pay its suppliers, which might suggest potential liquidity issues or a deliberate strategy to manage cash flow.

In conclusion, the analysis of Hewlett Packard Enterprise Co's activity ratios suggests that while there are improvements in managing receivables, there are concerns regarding inventory management and payment practices that may require further scrutiny to optimize working capital efficiency.

Long-term

	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
Fixed asset turnover	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	4.81	4.95	4.88
Total asset turnover	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	0.56	0.58	0.59

Hewlett Packard Enterprise Co's long-term activity ratios indicate how efficiently the company is using its assets to generate sales. The fixed asset turnover ratio, which measures the company's ability to generate sales from its fixed assets, has been relatively stable over the past eight quarters, ranging between 4.68 and 5.07. This indicates that the company is effectively utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio, which measures the company's ability to generate sales from all its assets, has shown some fluctuations over the same period, ranging from 0.48 to 0.53. Despite some variability, the total asset turnover ratio has generally been low compared to the fixed asset turnover ratio. This suggests that the company may have a large proportion of assets that are not being effectively utilized to generate sales.

Overall, while Hewlett Packard Enterprise Co appears to be efficiently using its fixed assets to drive sales, there may be room for improvement in optimizing the utilization of its total assets to increase overall sales efficiency.