Hewlett Packard Enterprise Co (HPE)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 21,182,000 | 19,864,000 | 19,971,000 | 16,049,000 | 17,098,000 |
| ROE | 9.56% | 4.37% | 17.16% | -2.01% | 6.14% |
October 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,025,000K ÷ $21,182,000K
= 9.56%
Hewlett Packard Enterprise Co's return on equity (ROE) has fluctuated over the past five years, indicating varying levels of profitability and efficiency in generating returns for shareholders. In 2023, the ROE increased to 9.56% from 4.37% in 2022, representing an improved ability to generate profits from shareholders' equity. This upward trend suggests a potential strengthening of the company's financial performance and efficiency in utilizing its equity.
However, in 2021, the ROE was notably higher at 17.16%, indicating a peak in profitability and return generation relative to the company's equity. This suggests that the company was particularly effective in utilizing its equity to generate profits and achieve a higher return for shareholders during that period.
The negative ROE of -2.01% in 2020 indicates that the company experienced a loss for that period relative to its equity, signifying a potential decrease in profitability and a need for improvement in the utilization of its equity in generating returns.
Overall, the varying ROE figures suggest that Hewlett Packard Enterprise Co has experienced fluctuations in its ability to generate profits from shareholders' equity, highlighting the need for consistent efforts to enhance profitability and efficiency in order to maximize returns for its shareholders.
Peer comparison
Oct 31, 2023