Hewlett Packard Enterprise Co (HPE)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.29 | 0.94 | 0.90 | 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 |
| Quick ratio | 0.86 | 0.51 | 0.46 | 0.54 | 0.56 | 0.56 | 0.53 | 0.48 | 0.36 | 0.51 | 0.49 | 0.54 | 0.39 | 0.75 | 0.76 | 0.74 | 0.52 | 0.70 | 0.56 | 0.51 |
| Cash ratio | 0.57 | 0.19 | 0.15 | 0.21 | 0.24 | 0.20 | 0.16 | 0.11 | 0.18 | 0.19 | 0.15 | 0.19 | 0.19 | 0.39 | 0.38 | 0.36 | 0.34 | 0.39 | 0.25 | 0.17 |
Hewlett Packard Enterprise Co's liquidity ratios have shown fluctuations over the past few years. The current ratio, which measures the company's ability to cover its short-term liabilities with its assets, has generally been in the range of 0.85 to 1.29. This indicates an improvement in liquidity from early 2020 to late 2022, followed by a slight decline.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also fluctuated significantly, ranging from 0.36 to 0.86. The quick ratio shows a similar trend as the current ratio, with an improvement in liquidity up to mid-2022, followed by a decline.
The cash ratio, which reflects the company's ability to cover its current liabilities with its cash and cash equivalents, has ranged from 0.1 to 0.57. The cash ratio shows a more conservative liquidity position compared to the current and quick ratios, indicating the company's ability to cover its short-term obligations primarily with cash.
Overall, Hewlett Packard Enterprise Co's liquidity ratios suggest that the company has maintained a reasonable level of liquidity over the years, although there have been periods of improvement as well as decline. It is important for the company to closely monitor its liquidity position to ensure it can meet its short-term obligations effectively.
See also:
Hewlett Packard Enterprise Co Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle is a crucial metric that reflects how efficiently a company manages its cash flows related to inventory, accounts receivable, and accounts payable. Hewlett Packard Enterprise Co's cash conversion cycle has shown fluctuations over the past few quarters.
We can observe that the cash conversion cycle was negative in most periods, indicating that Hewlett Packard Enterprise Co was able to generate cash quickly from its operating cycle. However, the magnitude of the negative days varied, suggesting fluctuations in inventory turnover, accounts receivable collection, and accounts payable payment efficiency.
In the most recent quarter, ending on October 31, 2024, the cash conversion cycle was -106.68 days, showing a significant decrease in efficiency compared to the previous quarter, where it was -46.90 days. This deterioration could be due to a slowdown in inventory turnover or delayed collections from customers, which may require attention to ensure optimal cash management.
Over the analyzed period, the company saw positive cash conversion cycles in some quarters, reflecting a slower cash conversion process. This underscores the importance of monitoring and managing working capital components to ensure a healthy cash flow position.
In conclusion, Hewlett Packard Enterprise Co's cash conversion cycle trend suggests fluctuations in operational efficiency related to cash flow management. Monitoring and addressing factors impacting inventory turnover, accounts receivable collection, and accounts payable payment timelines are essential to optimizing cash flow and overall financial performance.