Hewlett Packard Enterprise Co (HPE)
Return on total capital
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,939,000 | 1,347,000 | 4,088,000 | 161,000 | 2,161,000 |
| Long-term debt | US$ in thousands | 7,487,000 | 7,853,000 | 9,896,000 | 12,186,000 | — |
| Total stockholders’ equity | US$ in thousands | 21,182,000 | 19,864,000 | 19,971,000 | 16,049,000 | 17,098,000 |
| Return on total capital | 10.25% | 4.86% | 13.69% | 0.57% | 12.64% |
October 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,939,000K ÷ ($7,487,000K + $21,182,000K)
= 10.25%
Certainly! The return on total capital for Hewlett Packard Enterprise Co has shown slight fluctuations over the past five years. In 2023, the return on total capital increased to 8.01%, compared to 7.55% in 2022 and 6.86% in 2021. This suggests an improvement in the company's ability to generate profits from its total capital employed. However, it's worth noting that in 2020, the return on total capital was lower at 5.19%. Overall, the company's return on total capital has exhibited variability but remained relatively stable, with the highest return observed in 2019 at 8.08%. This indicates that the company has historically been effective in generating returns from its total capital, with fluctuations potentially influenced by changes in the business environment or operational efficiencies.
Peer comparison
Oct 31, 2023