Hewlett Packard Enterprise Co (HPE)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,190,000 | 2,004,000 | 1,928,000 | 2,023,000 | 2,089,000 | 1,243,000 | 1,238,000 | 925,000 | 782,000 | 1,471,000 | 1,287,000 | 1,358,000 | 1,132,000 | 927,000 | 657,000 | -455,000 | -329,000 | -14,000 | -102,000 | 1,166,000 |
| Interest expense (ttm) | US$ in thousands | 110,000 | 137,000 | 187,000 | 167,000 | 104,000 | 186,000 | 210,000 | 391,000 | 371,000 | 368,000 | 344,000 | 172,000 | 211,000 | 162,000 | 183,000 | 240,000 | 215,000 | 579,000 | 2,029,000 | 2,221,000 |
| Interest coverage | 19.91 | 14.63 | 10.31 | 12.11 | 20.09 | 6.68 | 5.90 | 2.37 | 2.11 | 4.00 | 3.74 | 7.90 | 5.36 | 5.72 | 3.59 | -1.90 | -1.53 | -0.02 | -0.05 | 0.52 |
October 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,190,000K ÷ $110,000K
= 19.91
The interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt. A higher interest coverage ratio indicates a better ability to meet interest obligations.
Analyzing the historical interest coverage ratios of Hewlett Packard Enterprise Co, we observe fluctuations over time. The ratios ranged from negative values to double-digit positive figures, indicating varying levels of ability to cover interest expenses. It is worth noting that negative interest coverage ratios (like in Jan 31, 2020 and Oct 31, 2020) signify that the company's operating income was insufficient to cover interest charges.
The interest coverage ratio improved significantly from Jan 31, 2021 to Oct 31, 2024, showing a strengthening ability to cover interest expenses. However, there were periods of decline in between, such as in Jul 31, 2023, and Jan 31, 2023, where the ratio dropped to lower levels.
Overall, Hewlett Packard Enterprise Co's interest coverage ratio has shown volatility over the analyzed periods, with some fluctuations indicating varying degrees of financial health and risk associated with debt coverage.
Peer comparison
Oct 31, 2024
See also:
Hewlett Packard Enterprise Co Interest Coverage (Quarterly Data)