Hewlett Packard Enterprise Co (HPE)
Debt-to-assets ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 7,487,000 | 7,853,000 | 9,896,000 | 12,186,000 |
| Total assets | US$ in thousands | 71,262,000 | 57,153,000 | 57,123,000 | 57,699,000 | 54,015,000 |
| Debt-to-assets ratio | 0.00 | 0.13 | 0.14 | 0.17 | 0.23 |
October 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $71,262,000K
= 0.00
The trend in Hewlett Packard Enterprise Co's debt-to-assets ratio over the past five years indicates a significant decrease. In October 2020, the ratio stood at 0.23, and it has steadily decreased each year to reach 0.00 in October 2024, reflecting a reduction in the company's reliance on debt to finance its assets.
A debt-to-assets ratio of 0.00 in 2024 suggests that the company's total debt is now equal to zero relative to its total assets, indicating a very low level of financial leverage. This could be interpreted positively as it signifies a stronger financial position and lower risk from debt obligations.
The declining trend in the debt-to-assets ratio may indicate that Hewlett Packard Enterprise Co has been effectively managing its debt levels and improving its asset base efficiency. By reducing its reliance on debt, the company may have enhanced its financial stability and flexibility, which could be beneficial in navigating economic uncertainties and pursuing growth opportunities.
Overall, the decreasing debt-to-assets ratio of Hewlett Packard Enterprise Co over the past five years reflects a positive financial shift towards a more conservative capital structure and stronger balance sheet position.
Peer comparison
Oct 31, 2024