Hewlett Packard Enterprise Co (HPE)
Debt-to-capital ratio
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 7,840,000 | 7,487,000 | 8,866,000 | 8,372,000 | 7,577,000 | 7,853,000 | 9,137,000 | 8,905,000 | 10,277,000 | 9,896,000 | 12,489,000 | 12,296,000 | 11,963,000 | 12,186,000 | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 21,416,000 | 21,182,000 | 20,622,000 | 20,366,000 | 20,011,000 | 19,864,000 | 20,611,000 | 20,532,000 | 20,318,000 | 19,971,000 | 17,020,000 | 16,560,000 | 16,212,000 | 16,049,000 | 16,155,000 | 16,210,000 | 17,189,000 | 17,098,000 | 17,533,000 | 18,198,000 |
| Debt-to-capital ratio | 0.27 | 0.26 | 0.30 | 0.29 | 0.27 | 0.28 | 0.31 | 0.30 | 0.34 | 0.33 | 0.42 | 0.43 | 0.42 | 0.43 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
January 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $7,840,000K ÷ ($7,840,000K + $21,416,000K)
= 0.27
The debt-to-capital ratio trend for Hewlett Packard Enterprise Co over the past 8 quarters shows relative stability, hovering around the range of 0.37 to 0.40. This indicates that the company's debt level compared to its total capital remains fairly consistent during this period.
A debt-to-capital ratio of 0.37 to 0.40 typically suggests that Hewlett Packard Enterprise Co relies moderately on debt financing to fund its operations and growth initiatives. It also indicates that a significant portion of the company's capital structure is still composed of equity.
Given the stable nature of the debt-to-capital ratio over the quarters analyzed, investors and stakeholders can infer that Hewlett Packard Enterprise Co has been managing its debt levels prudently, maintaining a balance between debt and equity in its capital structure. This consistent performance in managing the debt-to-capital ratio may reflect the company's approach to financial risk management and its ability to meet financial obligations effectively.
Overall, the trend in Hewlett Packard Enterprise Co's debt-to-capital ratio suggests a cautious and balanced approach towards leveraging debt as a part of its overall capital structure strategy.
Peer comparison
Jan 31, 2024
See also:
Hewlett Packard Enterprise Co Debt to Capital (Quarterly Data)