Hewlett Packard Enterprise Co (HPE)
Total asset turnover
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 30,127,000 | 29,135,000 | 28,496,000 | 27,784,000 | 26,982,000 |
| Total assets | US$ in thousands | 71,262,000 | 57,153,000 | 57,123,000 | 57,699,000 | 54,015,000 |
| Total asset turnover | 0.42 | 0.51 | 0.50 | 0.48 | 0.50 |
October 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $30,127,000K ÷ $71,262,000K
= 0.42
Hewlett Packard Enterprise Co's total asset turnover ratio has shown a declining trend over the past five years. The ratio decreased from 0.50 in 2020 to 0.42 in 2024. This indicates that the company generated $0.42 in revenue for every dollar of assets owned in 2024.
A lower total asset turnover ratio may suggest inefficiency in asset utilization, as the company is generating less revenue from its assets. It could be due to various reasons such as underutilization of assets, poor inventory management, or ineffective sales strategies.
Further analysis and comparison with industry peers would provide more insights into the efficiency of Hewlett Packard Enterprise Co's asset management and its competitiveness in the market. The company may need to assess its operational efficiency and consider strategies to improve productivity and revenue generation from its assets.
Peer comparison
Oct 31, 2024