Hewlett Packard Enterprise Co (HPE)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.89 | 0.87 | 0.88 | 0.87 | 0.85 | 0.88 | 0.92 | 0.90 | 0.94 | 0.91 | 0.95 | 0.93 | 0.90 | 0.88 | 0.99 | 0.89 | 0.79 | 0.79 | 0.88 | 0.93 |
| Quick ratio | 0.54 | 0.56 | 0.56 | 0.53 | 0.48 | 0.36 | 0.50 | 0.49 | 0.54 | 0.39 | 0.75 | 0.76 | 0.74 | 0.52 | 0.70 | 0.56 | 0.51 | 0.38 | 0.42 | 0.47 |
| Cash ratio | 0.21 | 0.24 | 0.20 | 0.16 | 0.11 | 0.18 | 0.18 | 0.15 | 0.19 | 0.19 | 0.39 | 0.38 | 0.36 | 0.34 | 0.39 | 0.25 | 0.17 | 0.20 | 0.22 | 0.22 |
Hewlett Packard Enterprise Co's liquidity ratios have shown varying trends over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has ranged between 0.85 and 0.92. Generally, a current ratio higher than 1 indicates good short-term liquidity, but Hewlett Packard Enterprise Co's current ratio has consistently been below that threshold.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also been relatively low, ranging from 0.46 to 0.51. This suggests that the company may have difficulty meeting its immediate liabilities without relying on inventory.
The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, has ranged from 0.26 to 0.33. This indicates that Hewlett Packard Enterprise Co may have limited cash reserves compared to its short-term obligations.
Overall, the liquidity ratios suggest that Hewlett Packard Enterprise Co may face challenges in meeting its short-term financial obligations without relying on potentially less liquid assets. It would be important for the company to closely monitor its liquidity position and make adjustments to ensure it can meet its financial obligations in a timely manner.
See also:
Hewlett Packard Enterprise Co Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle is a financial metric that measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates that the company is able to generate cash quickly from its operations.
Looking at the data for Hewlett Packard Enterprise Co over the past eight quarters, we observe some fluctuations in the cash conversion cycle. In Q1 2024, the company's cash conversion cycle stood at 6.14 days, indicating that it takes approximately 6 days for the company to convert its investments into cash. This suggests efficient management of cash flows and working capital.
In Q4 2023 and Q3 2022, Hewlett Packard Enterprise Co had negative cash conversion cycles of -6.25 days and -16.95 days, respectively. A negative cash conversion cycle implies that the company is able to generate cash from sales before having to pay suppliers, which can be a sign of effective inventory management and collection of accounts receivable.
On the other hand, in Q2 2022, the company experienced a longer cash conversion cycle of 33.85 days, indicating a delay in converting investments into cash. This could be attributed to factors such as slower collections from customers or higher inventory levels.
Overall, Hewlett Packard Enterprise Co has shown varying levels of efficiency in managing its cash conversion cycle over the past quarters. It is important for the company to strive for a shorter cash conversion cycle to optimize cash flows and working capital management.