Hewlett Packard Enterprise Co (HPE)
Return on total capital
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,190,000 | 2,004,000 | 1,928,000 | 2,023,000 | 2,089,000 | 1,243,000 | 1,238,000 | 925,000 | 782,000 | 1,471,000 | 1,287,000 | 1,358,000 | 1,132,000 | 927,000 | 657,000 | -455,000 | -329,000 | -14,000 | -102,000 | 1,166,000 |
| Long-term debt | US$ in thousands | — | 7,939,000 | 7,490,000 | 7,840,000 | 7,487,000 | 8,866,000 | 8,372,000 | 7,577,000 | 7,853,000 | 9,137,000 | 8,905,000 | 10,277,000 | 9,896,000 | 12,489,000 | 12,296,000 | 11,963,000 | 12,186,000 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 24,816,000 | 22,077,000 | 21,680,000 | 21,416,000 | 21,182,000 | 20,622,000 | 20,366,000 | 20,011,000 | 19,864,000 | 20,611,000 | 20,532,000 | 20,318,000 | 19,971,000 | 17,020,000 | 16,560,000 | 16,212,000 | 16,049,000 | 16,155,000 | 16,210,000 | 17,189,000 |
| Return on total capital | 8.82% | 6.68% | 6.61% | 6.91% | 7.29% | 4.22% | 4.31% | 3.35% | 2.82% | 4.94% | 4.37% | 4.44% | 3.79% | 3.14% | 2.28% | -1.61% | -1.17% | -0.09% | -0.63% | 6.78% |
October 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,190,000K ÷ ($—K + $24,816,000K)
= 8.82%
The return on total capital for Hewlett Packard Enterprise Co has fluctuated over the past few quarters. The ratio has shown improvement from negative figures in early 2020 to positive figures in late 2020 and beyond, indicating a trend towards more efficient capital utilization. The company's return on total capital peaked at 8.82% in October 2024 and has generally been on an upward trajectory since January 2021. This suggests that Hewlett Packard Enterprise Co has been effectively generating returns on the capital invested in the business, reflecting potential improvements in operational efficiency and profitability. However, it is essential to continue monitoring this ratio to ensure sustained positive performance in the future.
Peer comparison
Oct 31, 2024