Hewlett Packard Enterprise Co (HPE)
Debt-to-assets ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 7,487,000 | 7,853,000 | 9,896,000 | 12,186,000 | — |
| Total assets | US$ in thousands | 57,153,000 | 57,123,000 | 57,699,000 | 54,015,000 | 51,803,000 |
| Debt-to-assets ratio | 0.13 | 0.14 | 0.17 | 0.23 | 0.00 |
October 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $7,487,000K ÷ $57,153,000K
= 0.13
The debt-to-assets ratio measures the proportion of a company's total assets that are financed by debt. A lower ratio indicates lower financial risk and a greater ability to cover debt obligations.
Hewlett Packard Enterprise Co's debt-to-assets ratio has remained relatively stable over the past five years, ranging from 0.22 to 0.30. This suggests that the company has maintained a conservative approach to debt financing and has not significantly increased its reliance on debt to fund its assets.
The slight decrease in the ratio from 0.30 in 2020 to 0.22 in 2023 indicates a potential improvement in the company's ability to cover debt obligations with its assets. This may be attributed to a decrease in total debt or an increase in total assets during this period.
Overall, the consistent and relatively low debt-to-assets ratio reflects Hewlett Packard Enterprise Co's prudent management of debt and suggests a strong financial position with a lower risk of financial distress. However, further analysis of the trend in total debt and total assets is necessary to fully assess the company's debt management strategy.
Peer comparison
Oct 31, 2023