Hewlett Packard Enterprise Co (HPE)
Financial leverage ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 57,153,000 | 57,123,000 | 57,699,000 | 54,015,000 | 51,803,000 |
| Total stockholders’ equity | US$ in thousands | 21,182,000 | 19,864,000 | 19,971,000 | 16,049,000 | 17,098,000 |
| Financial leverage ratio | 2.70 | 2.88 | 2.89 | 3.37 | 3.03 |
October 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $57,153,000K ÷ $21,182,000K
= 2.70
The financial leverage ratio of Hewlett Packard Enterprise Co has shown a decreasing trend over the past five years, indicating a more conservative capital structure. This ratio measures the firm's use of debt to finance its assets, and a lower ratio generally suggests lower financial risk. The decrease from 3.37 in 2020 to 2.70 in 2023 demonstrates a reduced reliance on debt for asset financing. This trend may indicate a strategic shift towards a more balanced and sustainable capital structure. However, it is crucial to consider the overall business strategy and industry dynamics when evaluating the implications of this trend.
Peer comparison
Oct 31, 2023