Hewlett Packard Enterprise Co (HPE)
Return on total capital
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,730,000 | 2,939,000 | 1,347,000 | 4,088,000 | 161,000 |
| Long-term debt | US$ in thousands | — | 7,487,000 | 7,853,000 | 9,896,000 | 12,186,000 |
| Total stockholders’ equity | US$ in thousands | 24,816,000 | 21,182,000 | 19,864,000 | 19,971,000 | 16,049,000 |
| Return on total capital | 15.03% | 10.25% | 4.86% | 13.69% | 0.57% |
October 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,730,000K ÷ ($—K + $24,816,000K)
= 15.03%
Hewlett Packard Enterprise Co's return on total capital has shown a fluctuating trend over the past five years. In the most recent fiscal year ending on October 31, 2024, the company achieved a return on total capital of 15.03%, representing a significant improvement from the previous fiscal year where it stood at 10.25%.
The return on total capital for Hewlett Packard Enterprise Co was relatively low in fiscal year 2022 at 4.86%, indicating a less efficient utilization of both equity and debt in generating profits. However, there was a notable rebound in fiscal year 2023 when the return on total capital increased to 13.69%.
The return on total capital in fiscal year 2020 was minimal at 0.57%, suggesting inefficient capital deployment during that period. Overall, Hewlett Packard Enterprise Co's return on total capital has showcased volatility, with the most recent year reflecting a strong performance in generating returns relative to the capital employed.
Peer comparison
Oct 31, 2024