Hewlett Packard Enterprise Co (HPE)
Financial leverage ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 71,262,000 | 57,153,000 | 57,123,000 | 57,699,000 | 54,015,000 |
| Total stockholders’ equity | US$ in thousands | 24,816,000 | 21,182,000 | 19,864,000 | 19,971,000 | 16,049,000 |
| Financial leverage ratio | 2.87 | 2.70 | 2.88 | 2.89 | 3.37 |
October 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $71,262,000K ÷ $24,816,000K
= 2.87
The financial leverage ratio of Hewlett Packard Enterprise Co has shown fluctuation over the past five years, ranging from 2.70 to 3.37. A higher financial leverage ratio indicates a higher level of debt relative to equity in the company's capital structure.
In 2020, the ratio was highest at 3.37, signifying a relatively higher reliance on debt financing compared to equity. This could expose the company to higher financial risk and interest rate sensitivity.
Subsequently, the ratio decreased in 2021 and 2022 to 2.89 and 2.88 respectively, reflecting a slightly improved balance between debt and equity. However, in 2023, the ratio decreased further to 2.70, suggesting a more conservative debt financing approach.
The ratio increased again in 2024 to 2.87, indicating a slight uptick in the level of debt relative to equity. Overall, the fluctuating trend in the financial leverage ratio of Hewlett Packard Enterprise Co suggests varying degrees of leverage and risk in the company's capital structure over the past five years.
Peer comparison
Oct 31, 2024