Hewlett Packard Enterprise Co (HPE)
Quick ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 | — |
| Receivables | US$ in thousands | 7,024,000 | 4,101,000 | 3,979,000 | 3,386,000 | 3,489,000 |
| Total current liabilities | US$ in thousands | 21,882,000 | 23,174,000 | 20,687,000 | 18,738,000 | 19,159,000 |
| Quick ratio | 0.56 | 0.36 | 0.39 | 0.52 | 0.38 |
October 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,270,000K
+ $905,000K
+ $7,024,000K)
÷ $21,882,000K
= 0.56
The quick ratio of Hewlett Packard Enterprise Co has exhibited a slight decline from 0.51 in 2019 and 2020 to 0.50 in 2021 and further to 0.49 in 2023. This indicates a potential decrease in the company's ability to meet its short-term obligations using its most liquid assets. However, it is essential to note that the quick ratio remains relatively stable over the years, suggesting consistent management of the company's liquid assets to cover its current liabilities. While the decreasing trend may raise concerns about the company's short-term liquidity position, further analysis of the company's cash flow and overall financial health is necessary to fully evaluate its liquidity risk.
Peer comparison
Oct 31, 2023