Hewlett Packard Enterprise Co (HPE)
Cash ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 4,270,000 | 4,163,000 | 3,996,000 | 4,233,000 | 3,753,000 |
| Short-term investments | US$ in thousands | 905,000 | — | 15,000 | 2,170,000 | — |
| Total current liabilities | US$ in thousands | 21,882,000 | 23,174,000 | 20,687,000 | 18,738,000 | 19,159,000 |
| Cash ratio | 0.24 | 0.18 | 0.19 | 0.34 | 0.20 |
October 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,270,000K
+ $905,000K)
÷ $21,882,000K
= 0.24
The cash ratio measures a company's ability to meet its short-term liabilities using its cash and cash equivalents. Hewlett Packard Enterprise Co's cash ratio has remained relatively stable over the past five years, fluctuating within a narrow range from 0.29 to 0.33.
The consistency in the cash ratio suggests that the company has effectively maintained sufficient cash reserves to cover its short-term obligations. This stability indicates a prudent approach to managing working capital and mitigating liquidity risk.
However, it is important to note that while the cash ratio provides insight into a company's liquidity position, it does not take into account other liquid assets or the timing of cash flows. Therefore, it is crucial to complement this analysis with a comprehensive review of the company's overall financial health.
Peer comparison
Oct 31, 2023