Hewlett Packard Enterprise Co (HPE)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | -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 | -78.34 | -51.09 | -25.99 |
January 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 356.40 + 96.32 – 478.71
= -26.00
The cash conversion cycle (CCC) of Hewlett Packard Enterprise Co has fluctuated over the past eight quarters. In Q1 2024, the company's cash conversion cycle was positive at 6.14 days, indicating that it took the company approximately 6.14 days to convert its investments in inventory and other resources back into cash. This is a positive sign as it suggests efficient management of working capital.
The negative CCC in Q4 2023 and Q2 2023 (-6.25 days and -16.95 days, respectively) indicates that the company was able to convert its resources into cash at a faster rate than it took to pay off its payables. This can be a favorable situation as it signifies strong liquidity management.
However, in Q3 2023 and Q2 2022, the company had relatively longer cash conversion cycles of 22.07 days and 33.85 days, respectively. A longer CCC could suggest potential liquidity issues or inefficiencies in managing working capital.
Overall, there has been variability in Hewlett Packard Enterprise Co's cash conversion cycle over the quarters, and it is essential for the company to focus on optimizing its working capital management to ensure efficient operations and healthy cash flows in the future.
Peer comparison
Jan 31, 2024
See also:
Hewlett Packard Enterprise Co Cash Conversion Cycle (Quarterly Data)