Hewlett Packard Enterprise Co (HPE)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | -106.68 | -46.90 | -69.50 | -26.00 | -61.56 | 31.48 | 26.79 | -3.43 | -142.83 | 8.20 | 66.77 | 15.17 | -108.44 | -9.85 | -8.58 | 2.49 | -55.11 | -6.11 | 11.89 | -22.97 |
October 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 471.81 + 89.90 – 668.38
= -106.68
The cash conversion cycle for Hewlett Packard Enterprise Co fluctuated over the past several quarters, indicating variability in the company's efficiency in managing its working capital components. For the most recent quarter ending October 31, 2024, the cash conversion cycle stood at -106.68 days, suggesting that the company efficiently converted its investments in inventory and accounts receivable into cash within a relatively short period. This marked improvement from the prior quarter suggests effective working capital management.
In the preceding quarters, the cash conversion cycle exhibited a mix of positive and negative values. The trend indicates some instability in the company's cash conversion efficiency. Notably, the cycle was considerably negative in multiple periods, indicating that Hewlett Packard Enterprise Co may have been able to operate with negative working capital, potentially enabling it to utilize its resources more effectively.
Looking at a longer-term perspective, there have been instances where the cash conversion cycle was positive, implying that the company took longer to convert its investments into cash, potentially tying up capital and affecting liquidity. However, the company has also experienced periods of strong cash conversion efficiency, as seen in previous quarters where the cycle was notably negative.
Overall, while the recent performance suggests improved working capital management efficiency for Hewlett Packard Enterprise Co, the variability in the cash conversion cycle over the analyzed period underscores the importance of continuous monitoring and optimization of the company's working capital practices to support its financial health and operational performance in the long run.
Peer comparison
Oct 31, 2024
See also:
Hewlett Packard Enterprise Co Cash Conversion Cycle (Quarterly Data)