Hewlett Packard Enterprise Co (HPE)
Receivables turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 29,135,000 | 28,496,000 | 27,784,000 | 26,982,000 | 29,135,000 |
| Receivables | US$ in thousands | 7,024,000 | 4,101,000 | 3,979,000 | 3,386,000 | 3,489,000 |
| Receivables turnover | 4.15 | 6.95 | 6.98 | 7.97 | 8.35 |
October 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $29,135,000K ÷ $7,024,000K
= 4.15
The receivables turnover ratio for Hewlett Packard Enterprise Co has fluctuated over the past five years. In 2023, the company's receivables turnover was 8.37, indicating that the company collected its outstanding receivables approximately 8.37 times during the year. This represents an improvement compared to the previous year when the receivables turnover was 6.95.
The trend over the past five years shows some variability, with the ratio reaching a low of 6.95 in 2022 and a high of 7.97 in 2020. A higher receivables turnover ratio generally suggests that the company is more efficient in collecting its outstanding receivables, which can improve cash flow and reduce the risk of bad debts.
However, it's important to note that a very high turnover ratio may also indicate a very strict credit policy that could potentially be turning away valuable customers. Overall, the upward trend in receivables turnover from 2022 to 2023 could indicate improvements in the company's accounts receivable management.
Peer comparison
Oct 31, 2023