Hewlett Packard Enterprise Co (HPE)
Profitability ratios
Return on sales
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 79.87% | 78.74% | 76.56% | 79.47% | 76.12% |
| Operating profit margin | 7.27% | 7.17% | 2.74% | 4.07% | -1.22% |
| Pretax margin | 9.80% | 7.65% | 3.07% | 12.91% | -1.64% |
| Net profit margin | 8.56% | 6.95% | 3.05% | 12.33% | -1.19% |
Hewlett Packard Enterprise Co's profitability ratios show a mixed performance over the past five years. The company's gross profit margin has generally been healthy, reaching a high of 79.87% in October 2024. This indicates strong control over the cost of goods sold and efficient production processes.
In terms of operating profit margin, Hewlett Packard Enterprise Co has shown some stability, with moderate fluctuations between 2.74% and 7.27% over the period. While the company has demonstrated the ability to generate profits from its core operations, there is room for improvement in optimizing operating expenses to enhance profitability.
The pretax margin has shown more variability, with a significant decrease in October 2021, rebounding in the following years. This metric reflects the company's ability to manage operating expenses, interest payments, and other costs before accounting for taxes.
Net profit margin, representing the company's bottom-line profitability, has also exhibited fluctuations, with a notable negative margin in October 2020, possibly due to one-time charges or operational challenges. The rebound in subsequent years suggests improved performance in generating profits after accounting for all expenses.
Overall, Hewlett Packard Enterprise Co's profitability ratios indicate a generally positive trend in recent years, with improvements in managing costs and generating profits. However, the company may benefit from further operational efficiencies to enhance its overall profitability in the future.
Return on investment
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.07% | 3.66% | 1.37% | 1.96% | -0.61% |
| Return on assets (ROA) | 3.62% | 3.54% | 1.52% | 5.94% | -0.60% |
| Return on total capital | 15.03% | 10.25% | 4.86% | 13.69% | 0.57% |
| Return on equity (ROE) | 10.39% | 9.56% | 4.37% | 17.16% | -2.01% |
Hewlett Packard Enterprise Co's profitability ratios have shown fluctuating trends over the past five years.
Operating return on assets (Operating ROA) decreased from 3.66% in 2023 to 1.37% in 2022, before recovering slightly to 3.07% in 2024. This ratio indicates how efficiently the company generates earnings from its assets to support operations.
Return on assets (ROA) saw a similar trend, with a significant drop from 5.94% in 2021 to -0.60% in 2020, before rebounding to 3.62% in 2024. ROA measures the overall profitability of the company relative to its total assets.
Return on total capital increased from 10.25% in 2023 to 15.03% in 2024, indicating the company's ability to generate earnings from both debt and equity investments.
Return on equity (ROE) fluctuated as well, with a notable decrease from 17.16% in 2021 to -2.01% in 2020, before recovering to 10.39% in 2024. ROE reflects the company's ability to generate profits from shareholders' equity.
Overall, although Hewlett Packard Enterprise Co experienced fluctuations in its profitability ratios, there is a recent trend of improvement in its ability to generate returns for both its assets and equity holders. However, continued monitoring of these ratios is essential to assess the company's profitability and operational efficiency in the future.