Hewlett Packard Enterprise Co (HPE)
Interest coverage
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,730,000 | 2,939,000 | 1,347,000 | 4,088,000 | 161,000 |
| Interest expense | US$ in thousands | 777,000 | 709,000 | 471,000 | 501,000 | 603,000 |
| Interest coverage | 4.80 | 4.15 | 2.86 | 8.16 | 0.27 |
October 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $3,730,000K ÷ $777,000K
= 4.80
Hewlett Packard Enterprise Co's interest coverage ratio has shown fluctuations over the past five years. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
In 2024, the interest coverage ratio improved to 4.80, indicating that the company generated 4.80 times the income needed to cover its interest expenses. This improvement from the previous year suggests a positive trend in the company's ability to meet its interest payments.
In 2023, the interest coverage ratio was 4.15, showing a slight decrease from the previous year. Despite this dip, the ratio remained relatively strong, indicating the company's solid operating income relative to its interest expenses.
In 2022, the interest coverage ratio was 2.86, signaling a lower ability to cover interest payments compared to the prior year. This decrease may raise concerns about the company's ability to meet its interest obligations.
In 2021, the interest coverage ratio significantly improved to 8.16, reflecting a strong ability to cover interest expenses. This substantial increase from the previous year suggests a positive financial position for the company in that period.
In 2020, the interest coverage ratio was notably low at 0.27, indicating that the company's operating income was insufficient to cover its interest expenses. This low ratio raises concerns about the company's financial health and ability to meet its debt obligations during that period.
Overall, while Hewlett Packard Enterprise Co has shown fluctuations in its interest coverage ratio over the past five years, it is essential for investors and stakeholders to closely monitor this ratio to assess the company's financial stability and ability to manage debt obligations.
Peer comparison
Oct 31, 2024