Hewlett Packard Enterprise Co (HPE)

Solvency ratios

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
Debt-to-assets ratio 0.00 0.13 0.13 0.13 0.13 0.16 0.15 0.14 0.14 0.16 0.16 0.18 0.17 0.22 0.23 0.22 0.23 0.00 0.00 0.00
Debt-to-capital ratio 0.00 0.26 0.26 0.27 0.26 0.30 0.29 0.27 0.28 0.31 0.30 0.34 0.33 0.42 0.43 0.42 0.43 0.00 0.00 0.00
Debt-to-equity ratio 0.00 0.36 0.35 0.37 0.35 0.43 0.41 0.38 0.40 0.44 0.43 0.51 0.50 0.73 0.74 0.74 0.76 0.00 0.00 0.00
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

Hewlett Packard Enterprise Co has shown a consistent decline in its solvency ratios over the past few years. The debt-to-assets ratio has remained relatively low and stable at around 0.13 to 0.23, indicating that the company has been effectively managing its debt in relation to its total assets.

The debt-to-capital and debt-to-equity ratios, on the other hand, have exhibited an increasing trend, ranging from 0.26 to 0.43 and 0.35 to 0.76, respectively. These higher ratios suggest that the company has been relying more on debt financing compared to its capital and equity, which could potentially pose a higher risk in terms of financial stability and ability to meet its debt obligations.

The financial leverage ratio, which measures the company's total assets in relation to equity, has shown a fluctuating pattern with values between 2.70 and 3.61. This indicates that the company has been increasingly leveraging its equity to support its total assets, which can also signal a higher level of financial risk.

Overall, the deteriorating trend in the solvency ratios of Hewlett Packard Enterprise Co suggests a potential increase in financial leverage and risk, highlighting the importance of closely monitoring the company's debt management strategies and ability to meet its financial obligations in the future.

Coverage ratios

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
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

The interest coverage ratio for Hewlett Packard Enterprise Co has displayed fluctuations over the past several quarters. The ratio measures the company's ability to cover its interest expenses from its operating profits. An interest coverage ratio above 1 indicates that the company is generating enough operating income to cover its interest payments.

From the data provided, we can see that Hewlett Packard Enterprise Co had a positive interest coverage ratio in most quarters, indicating a healthy ability to meet its interest obligations. However, the ratio exhibited significant variability, with highs reaching 20.09 in Oct 31, 2023, and lows falling to -1.90 in Jan 31, 2021.

The downward trends in interest coverage ratios observed in some quarters could raise concerns about the company's financial stability and its ability to comfortably meet interest payments in those periods. Additionally, significantly negative ratios in Oct 31, 2020, Jan 31, 2021, and Jan 31, 2020 suggest that the company may have faced challenges in generating sufficient operating income to cover its interest expenses during those periods.

Overall, a consistent and positive trend in the interest coverage ratio would indicate a company's strong financial health and ability to service its debt obligations comfortably. Further analysis and monitoring of Hewlett Packard Enterprise Co's interest coverage ratio trend will be important to assess the company's financial sustainability.

See also:

Hewlett Packard Enterprise Co Solvency Ratios (Quarterly Data)