Hewlett Packard Enterprise Co (HPE)
Solvency ratios
Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
---|---|---|---|---|---|
Debt-to-assets ratio | 0.00 | 0.13 | 0.14 | 0.17 | 0.23 |
Debt-to-capital ratio | 0.00 | 0.26 | 0.28 | 0.33 | 0.43 |
Debt-to-equity ratio | 0.00 | 0.35 | 0.40 | 0.50 | 0.76 |
Financial leverage ratio | 2.87 | 2.70 | 2.88 | 2.89 | 3.37 |
The solvency ratios of Hewlett Packard Enterprise Co indicate a strong financial position over the past five years, as reflected in the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios.
The debt-to-assets ratio has shown a decreasing trend from 0.23 in 2020 to 0.00 in 2024, indicating that the company has reduced its reliance on debt to finance its assets. This suggests that a larger portion of the company's assets is financed through equity, which can be a positive sign of financial stability.
Similarly, the debt-to-capital ratio has also exhibited a declining pattern from 0.43 in 2020 to 0.00 in 2024. This downward trend indicates that the company is utilizing more of its own capital rather than relying on debt, which can enhance financial flexibility and reduce potential financial risks.
The debt-to-equity ratio has decreased consistently from 0.76 in 2020 to 0.00 in 2024, indicating a significant improvement in the company's solvency position. A lower debt-to-equity ratio signifies that the company is less leveraged and has a stronger financial base to support its operations and future growth.
The financial leverage ratio has also shown a decreasing trend over the period, indicating that the company has been reducing its reliance on debt to finance its operations. A lower financial leverage ratio indicates a lower level of financial risk and higher solvency.
Overall, the decreasing trend in all solvency ratios of Hewlett Packard Enterprise Co points towards a healthier financial position, reduced financial risk, and improved solvency over the years, reflecting positively on the company's ability to meet its financial obligations and sustain long-term growth.
Coverage ratios
Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
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Interest coverage | 4.80 | 4.15 | 2.86 | 8.16 | 0.27 |
Hewlett Packard Enterprise Co's interest coverage ratio has displayed variability over the past five years. The trend indicates that the company's ability to cover its interest expenses with operating profits has fluctuated significantly. In 2020, the interest coverage ratio was notably low at 0.27, signaling potential financial risk due to insufficient earnings to cover interest payments. However, there was a substantial improvement in 2021 with the ratio increasing to 8.16, indicating a strong ability to meet interest obligations. The ratio then decreased in 2022 and 2023 to 2.86 and 4.15, respectively, suggesting a slight decline in the company's ability to cover interest costs efficiently. In the most recent year, 2024, the interest coverage ratio stands at 4.80, indicating a moderate level of coverage. Overall, the fluctuating nature of Hewlett Packard Enterprise Co's interest coverage ratio warrants further monitoring to assess the company's financial health and ability to service its debt obligations effectively.