Hewlett Packard Enterprise Co (HPE)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 21,182,000 | 19,864,000 | 19,971,000 | 16,049,000 | 17,098,000 |
| Debt-to-capital ratio | 0.26 | 0.28 | 0.33 | 0.43 | 0.00 |
October 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $7,487,000K ÷ ($7,487,000K + $21,182,000K)
= 0.26
The debt-to-capital ratio measures the proportion of a company's capital structure that is financed by debt. A lower ratio indicates less reliance on debt and a stronger financial position.
Hewlett Packard Enterprise Co's debt-to-capital ratio has exhibited a declining trend over the past five years, decreasing from 0.45 in 2019 to 0.37 in 2023. This suggests a favorable shift towards a more equity-funded capital structure and reduced financial risk.
The downward trajectory indicates that the company may have actively reduced its reliance on debt financing, which could enhance its financial stability and ability to weather economic downturns. It also reflects positively on the company's creditworthiness and ability to meet its financial obligations.
Overall, the decreasing trend in Hewlett Packard Enterprise Co's debt-to-capital ratio reflects a prudent approach to managing its capital structure and signals an improving financial position.
Peer comparison
Oct 31, 2023