Hewlett Packard Enterprise Co (HPE)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 24,816,000 | 21,182,000 | 19,864,000 | 19,971,000 | 16,049,000 |
| Debt-to-capital ratio | 0.00 | 0.26 | 0.28 | 0.33 | 0.43 |
October 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $24,816,000K)
= 0.00
The debt-to-capital ratio of Hewlett Packard Enterprise Co has shown a declining trend over the past five years, decreasing from 0.43 in October 2020 to 0.00 in October 2024. This indicates that the company's reliance on debt as a source of financing relative to its total capital has decreased significantly.
A debt-to-capital ratio of 0.00 in October 2024 suggests that the company had no debt in relation to its total capital, indicating a strong ability to fund its operations and investments through equity and other non-debt sources.
This improvement in the debt-to-capital ratio could be seen as a positive sign, as it signifies lower financial risk and potential cost savings associated with servicing debt. It also reflects positively on the company's ability to manage its capital structure effectively and potentially attract investors who prefer lower leverage levels.
Overall, the declining trend in the debt-to-capital ratio of Hewlett Packard Enterprise Co indicates a strengthening financial position in terms of debt management and capital structure over the past five years.
Peer comparison
Oct 31, 2024