Hewlett Packard Enterprise Co (HPE)
Financial leverage ratio
| Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 71,262,000 | 60,852,000 | 59,711,000 | 58,602,000 | 57,153,000 | 56,415,000 | 55,549,000 | 55,591,000 | 57,123,000 | 57,675,000 | 56,324,000 | 57,873,000 | 57,699,000 | 56,437,000 | 54,132,000 | 53,451,000 | 54,015,000 | 58,239,000 | 54,515,000 | 52,244,000 |
| Total stockholders’ equity | US$ in thousands | 24,816,000 | 22,077,000 | 21,680,000 | 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 |
| Financial leverage ratio | 2.87 | 2.76 | 2.75 | 2.74 | 2.70 | 2.74 | 2.73 | 2.78 | 2.88 | 2.80 | 2.74 | 2.85 | 2.89 | 3.32 | 3.27 | 3.30 | 3.37 | 3.61 | 3.36 | 3.04 |
October 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $71,262,000K ÷ $24,816,000K
= 2.87
Hewlett Packard Enterprise Co's financial leverage ratio has shown fluctuations over the reported periods. The ratio has ranged from 2.70 to 3.61, indicating changes in the company's level of debt relative to its equity. Generally, a higher financial leverage ratio suggests higher financial risk due to increased debt obligations.
Analyzing the trend, we observe that the ratio experienced a gradual increase from 2.70 in October 2020 to a peak of 3.61 in January 2020, indicating a significant increase in debt levels relative to equity during this period. However, the ratio declined in subsequent periods, reaching a low of 2.70 in October 2023.
Despite fluctuations, the financial leverage ratio remained above 3.00 for several periods, indicating a relatively high level of debt compared to equity, which may be a cause for concern regarding the company's financial stability and ability to meet its debt obligations. It's essential for investors and stakeholders to monitor these changes to assess Hewlett Packard Enterprise Co's financial risk and leverage position.
Peer comparison
Oct 31, 2024
See also:
Hewlett Packard Enterprise Co Financial Leverage (Quarterly Data)