Hewlett Packard Enterprise Co (HPE)
Return on total capital
| 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 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 1,274,000 | 1,304,000 | 1,746,000 |
| Long-term debt | US$ in thousands | 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 | 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 | 17,098,000 | 17,533,000 | 18,198,000 |
| Return on total capital | 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% | 7.45% | 7.44% | 9.59% |
January 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,023,000K ÷ ($7,840,000K + $21,416,000K)
= 6.91%
Hewlett Packard Enterprise Co has demonstrated a fluctuating trend in its return on total capital over the past eight quarters, ranging from a low of 6.39% in Q2 2022 to a high of 8.57% in Q2 2023. The company's return on total capital has generally been above 7%, indicating that it has been able to generate decent returns relative to the total capital employed in its operations.
The most recent data for Q1 2024 shows a return on total capital of 7.48%, which is slightly lower compared to the previous quarter but still in line with historical performance. It is important for the company to monitor this metric closely to ensure that it continues to effectively utilize its capital to generate returns for its shareholders. Overall, the fluctuations in Hewlett Packard Enterprise Co's return on total capital suggest that the company may be experiencing some variability in its operational efficiency and capital allocation strategies.
Peer comparison
Jan 31, 2024