Hewlett Packard Enterprise Co (HPE)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 51,803,000 | 50,760,000 | 51,140,000 |
| 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 |
| Financial leverage ratio | 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 | 3.03 | 2.90 | 2.81 |
January 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $58,602,000K ÷ $21,416,000K
= 2.74
Hewlett Packard Enterprise Co's financial leverage ratio has been relatively stable over the past eight quarters, ranging from 2.70 to 2.88. The ratio measures the company's level of financial leverage or the extent to which it relies on debt to finance its operations.
A financial leverage ratio of 2.74 in Q1 2024 indicates that for every dollar of equity, the company has $2.74 of total assets. This means that approximately 73% of the company's assets are financed by debt.
The consistent level of the financial leverage ratio suggests that Hewlett Packard Enterprise Co has maintained a stable capital structure over the period under review. However, it is important to keep an eye on changes in this ratio, as a significant increase in financial leverage could indicate increased financial risk, while a decreasing ratio may signal improved financial stability.
Peer comparison
Jan 31, 2024
See also:
Hewlett Packard Enterprise Co Financial Leverage (Quarterly Data)