Hewlett Packard Enterprise Co (HPE)
Quick ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 14,846,000 | 4,270,000 | 4,163,000 | 3,996,000 | 4,233,000 |
| Short-term investments | US$ in thousands | — | -145,000 | — | 15,000 | 2,170,000 |
| Receivables | US$ in thousands | 7,420,000 | 7,024,000 | 4,101,000 | 3,979,000 | 3,386,000 |
| Total current liabilities | US$ in thousands | 25,973,000 | 21,882,000 | 23,174,000 | 20,687,000 | 18,738,000 |
| Quick ratio | 0.86 | 0.51 | 0.36 | 0.39 | 0.52 |
October 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($14,846,000K
+ $—K
+ $7,420,000K)
÷ $25,973,000K
= 0.86
The quick ratio of Hewlett Packard Enterprise Co has shown fluctuations over the past five years. In 2020, the quick ratio was 0.52, indicating that the company had $0.52 of liquid assets available to cover each $1 of current liabilities. The ratio then increased in 2021 to 0.39 before jumping significantly to 0.36 in 2022. This decrease suggests a potential strain on the company's ability to meet its short-term obligations with its readily available assets.
However, there was a notable improvement in the quick ratio in 2023, rising to 0.51, indicating a better position in terms of liquidity compared to the previous year. The most recent data for 2024 shows a quick ratio of 0.86, indicating a substantial increase in liquidity and a stronger ability to cover short-term obligations with current liquid assets.
Overall, while there have been fluctuations in Hewlett Packard Enterprise Co's quick ratio over the past five years, the latest ratio of 0.86 suggests a significant improvement in liquidity and the company's ability to meet short-term financial obligations.
Peer comparison
Oct 31, 2024