Hewlett Packard Enterprise Co (HPE)
Return on assets (ROA)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,025,000 | 868,000 | 3,427,000 | -322,000 | 1,049,000 |
| Total assets | US$ in thousands | 57,153,000 | 57,123,000 | 57,699,000 | 54,015,000 | 51,803,000 |
| ROA | 3.54% | 1.52% | 5.94% | -0.60% | 2.02% |
October 31, 2023 calculation
ROA = Net income ÷ Total assets
= $2,025,000K ÷ $57,153,000K
= 3.54%
Hewlett Packard Enterprise Co's return on assets (ROA) measures the company's ability to generate earnings from its assets. The trend of the ROA over the past five years reflects the company's efficiency in utilizing its assets to generate profit.
As of October 31, 2023, Hewlett Packard Enterprise Co's ROA stands at 3.54%, representing an improvement from the previous year's 1.52%. This indicates that the company has efficiently utilized its assets to generate higher returns compared to the prior year.
In the fiscal year ending October 31, 2021, the ROA was 5.94%, demonstrating superior asset utilization and profitability compared to the surrounding years. This suggests that the company effectively managed its assets to generate a higher return, potentially through improved operational efficiency or higher sales relative to the size of its asset base.
However, in October 31, 2020, the ROA was negative at -0.60%, signifying that the company incurred a net loss relative to its assets. This may indicate inefficiencies in asset utilization or operational challenges during that period.
The ROA for October 31, 2019, stood at 2.02%, reflecting a moderate performance in asset utilization and profitability.
Overall, the fluctuation in ROA over the years indicates varying levels of efficiency in generating earnings from the company's asset base. The improvement in 2023 suggests a positive trend, but it is essential to analyze the underlying factors driving these changes to assess the company's overall performance.
Peer comparison
Oct 31, 2023