Hewlett Packard Enterprise Co Financials
Hewlett Packard Enterprise Co (HPE) reported $34.3B in revenue for fiscal year 2025, up 13.8% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 13 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Revenue expansion is being accompanied by margin reversal and balance-sheet funding, making capital deployment the dominant business mechanic.
In FY2025, revenue reached$34.3B while operating margin swung from7.3% to-1.3% , showing that added volume did not translate into operating earnings. The near-break-even net result also reflects heavier financing costs, with interest expense rising to$1.1B as leverage increased.
Cash conversion is mixed rather than uniformly weak: operating cash flow of
FY2025 changed the financing profile: investing cash flow was
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Hewlett Packard Enterprise Co's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Hewlett Packard Enterprise Co has an operating margin of -1.3%, meaning the company loses $1 on every $100 of revenue. This results in a profitability score of 43/100. This is down from 7.3% the prior year.
Hewlett Packard Enterprise Co's revenue grew 13.8% year-over-year to $34.3B, a solid pace of expansion. This earns a growth score of 61/100.
Hewlett Packard Enterprise Co has elevated debt relative to equity (D/E of 0.72), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 11/100, reflecting increased financial risk.
Hewlett Packard Enterprise Co's current ratio of 1.01 is below the typical benchmark, resulting in a score of 19/100. This tight liquidity could limit financial flexibility if cash inflows slow.
While Hewlett Packard Enterprise Co generated $2.9B in operating cash flow, capex of $2.3B consumed most of it, leaving $627.0M in free cash flow. This results in a low score of 43/100, reflecting heavy capital investment rather than weak cash generation.
Hewlett Packard Enterprise Co's ROE of 0.2% shows moderate profitability relative to equity, earning a score of 41/100. This is down from 10.4% the prior year.
Hewlett Packard Enterprise Co scores 1.22, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($70.8B) relative to total liabilities ($51.2B). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Hewlett Packard Enterprise Co passes 4 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 3 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), both operating efficiency signals pass.
Hewlett Packard Enterprise Co reported $57.0M of net income while generating $2.9B in operating cash flow. The ratio between the two is outside the range this page publishes as a per-dollar figure, so both figures are given instead.
Hewlett Packard Enterprise Co reported an operating loss of $437.0M against $1.1B in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.
Key Financial Metrics
Earnings & Revenue
Hewlett Packard Enterprise Co generated $34.3B in revenue in fiscal year 2025. This represents an increase of 13.8% from the prior year.
Hewlett Packard Enterprise Co's EBITDA was $2.3B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 51.6% from the prior year.
Hewlett Packard Enterprise Co reported $57.0M in net income in fiscal year 2025. This represents a decrease of 97.8% from the prior year.
Hewlett Packard Enterprise Co earned -$0.04 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 102.1% from the prior year.
Cash & Balance Sheet
Hewlett Packard Enterprise Co generated $627.0M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 68.2% from the prior year.
Hewlett Packard Enterprise Co held $5.8B in cash against $17.8B in long-term debt as of fiscal year 2025.
Hewlett Packard Enterprise Co paid $0.52 per share in dividends in fiscal year 2025. That is unchanged from the prior year.
Margins & Returns
Hewlett Packard Enterprise Co's operating margin was -1.3% in fiscal year 2025, reflecting core business profitability. This is down 8.5 percentage points from the prior year.
Hewlett Packard Enterprise Co's net profit margin was 0.2% in fiscal year 2025, showing the share of revenue converted to profit. This is down 8.4 percentage points from the prior year.
Hewlett Packard Enterprise Co's ROE was 0.2% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 10.2 percentage points from the prior year.
Not reported for fiscal year 2025.
Capital Allocation
Hewlett Packard Enterprise Co invested $2.5B in research and development in fiscal year 2025. This represents an increase of 12.1% from the prior year.
Hewlett Packard Enterprise Co spent $202.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 34.7% from the prior year.
Hewlett Packard Enterprise Co invested $2.3B in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 3.2% from the prior year.
HPE Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $38.8B | $34.3B+13.8% | $30.1B+3.4% | $29.1B+2.2% | $28.5B+2.6% | $27.8B+3.0% | $27.0B-7.4% | $29.1B-5.6% | $30.9B+6.9% | $28.9B-4.7% | $30.3B-2.6% | $31.1B-43.6% | $55.1B-3.9% | $57.4B |
| Cost of Revenue | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $14.1B+10.7% | $12.7B-2.5% | $13.0B-1.9% | $13.3B+7.3% | $12.4B+0.3% | $12.4B |
| Gross Profit | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $16.8B+3.8% | $16.2B-6.3% | $17.2B-3.1% | $17.8B-58.4% | $42.7B-5.1% | $45.0B |
| R&D Expenses | $3.2B | $2.5B+12.1% | $2.2B-4.4% | $2.3B+14.9% | $2.0B+3.3% | $2.0B+5.6% | $1.9B+1.7% | $1.8B+10.5% | $1.7B+11.9% | $1.5B-13.1% | $1.7B+2.3% | $1.7B-23.7% | $2.2B+12.3% | $2.0B |
| SG&A Expenses | $6.7B | $5.7B+17.1% | $4.9B-5.6% | $5.2B+4.4% | $4.9B+0.2% | $4.9B+6.6% | $4.6B-5.8% | $4.9B-0.3% | $4.9B-1.8% | $5.0B-6.8% | $5.4B+4.6% | $5.1B-41.0% | $8.7B+1.3% | $8.6B |
| Operating Income | $1.5B | -$437.0M-120.0% | $2.2B+4.8% | $2.1B+167.1% | $782.0M-30.9% | $1.1B+444.1% | -$329.0M-125.8% | $1.3B-26.7% | $1.7B+208.0% | $564.0M-85.5% | $3.9B+100.6% | $1.9B-16.7% | $2.3B-20.9% | $3.0B |
| Interest Expense | N/A | $1.1B+41.3% | $777.0M+9.6% | $709.0M+50.5% | $471.0M-6.0% | $501.0M-16.9% | $603.0M-0.8% | $608.0M-3.6% | $631.0M+5.3% | $599.0M+9.5% | $547.0M+119.7% | $249.0M-22.7% | $322.0M-12.7% | $369.0M |
| Income Tax | -$397.0M | -$342.0M-191.4% | $374.0M+82.4% | $205.0M+2462.5% | $8.0M-95.0% | $160.0M+233.3% | -$120.0M-123.8% | $504.0M+128.9% | -$1.7B-963.4% | -$164.0M-126.3% | $623.0M+188.4% | -$705.0M-218.3% | $596.0M-27.3% | $820.0M |
| Net Income | $1.6B | $57.0M-97.8% | $2.6B+27.4% | $2.0B+133.3% | $868.0M-74.7% | $3.4B+1164.3% | -$322.0M-130.7% | $1.0B-45.0% | $1.9B+454.7% | $344.0M-89.1% | $3.2B+28.4% | $2.5B+49.3% | $1.6B-19.6% | $2.1B |
| EPS (Diluted) | — | -$0.04-102.1% | $1.93+25.3% | $1.54+133.3% | $0.66-74.4% | $2.58+1132.0% | -$0.25-132.5% | $0.77-37.4% | $1.23+485.7% | $0.21-88.5% | $1.82+35.8% | $1.34+48.9% | $0.90-19.6% | $1.12 |
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
HPE Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $75.9B+6.5% | $71.3B+24.7% | $57.2B+0.1% | $57.1B-1.0% | $57.7B+6.8% | $54.0B+4.3% | $51.8B-6.6% | $55.5B-9.6% | $61.4B-22.9% | $79.6B-0.4% | $79.9B+22.8% | $65.1B | N/A |
| Current Assets | $25.0B-25.3% | $33.5B+76.6% | $18.9B-7.6% | $20.5B+8.6% | $18.9B+14.0% | $16.6B+9.3% | $15.1B-12.3% | $17.3B-19.5% | $21.4B-25.8% | $28.9B-3.5% | $30.0B+36.0% | $22.0B | N/A |
| Cash & Equivalents | $5.8B-61.1% | $14.8B+247.7% | $4.3B+2.6% | $4.2B+4.2% | $4.0B-5.6% | $4.2B+12.8% | $3.8B-23.1% | $4.9B-49.1% | $9.6B-26.2% | $13.0B+32.0% | $9.8B+324.4% | $2.3B+6.3% | $2.2B |
| Inventory | $6.4B-18.7% | $7.8B+69.5% | $4.6B-10.7% | $5.2B+14.4% | $4.5B+68.7% | $2.7B+12.0% | $2.4B-2.5% | $2.4B+5.7% | $2.3B+34.6% | $1.7B-21.7% | $2.2B+16.7% | $1.9B | N/A |
| Accounts Receivable | $5.3B+49.0% | $3.5B+2.0% | $3.5B-15.1% | $4.1B+3.1% | $4.0B+17.5% | $3.4B+14.5% | $3.0B-9.4% | $3.3B+6.2% | $3.1B-2.5% | $3.2B-63.1% | $8.5B+1.4% | $8.4B | N/A |
| Goodwill | $23.8B+31.4% | $18.1B+0.5% | $18.0B+3.4% | $17.4B-4.9% | $18.3B+1.6% | $18.0B-1.6% | $18.3B+4.4% | $17.5B+0.1% | $17.5B+8.9% | $16.1B-15.1% | $18.9B-27.0% | $26.0B+0.1% | $25.9B |
| Total Liabilities | $51.2B+10.3% | $46.4B+29.1% | $36.0B-3.5% | $37.3B-1.2% | $37.7B-0.6% | $38.0B+9.4% | $34.7B+1.3% | $34.3B-9.7% | $37.9B-21.3% | $48.2B+3.9% | $46.4B+63.9% | $28.3B | N/A |
| Current Liabilities | $24.6B-5.1% | $26.0B+18.7% | $21.9B-5.6% | $23.2B+12.0% | $20.7B+10.4% | $18.7B-2.2% | $19.2B+11.4% | $17.2B-9.1% | $18.9B-16.0% | $22.5B+2.4% | $22.0B+11.3% | $19.8B | N/A |
| Long-Term Debt | $17.8B+31.5% | $13.5B+80.4% | $7.5B-4.7% | $7.9B-20.6% | $9.9B-18.8% | $12.2B+29.7% | $9.4B-7.3% | $10.1B-0.5% | $10.2B-16.3% | $12.2B-19.4% | $15.1B+3014.0% | $485.0M | N/A |
| Total Equity | $24.7B-0.5% | $24.8B+17.2% | $21.2B+6.6% | $19.9B-0.5% | $20.0B+24.4% | $16.0B-6.1% | $17.1B-19.5% | $21.2B-9.5% | $23.5B-25.4% | $31.4B-6.2% | $33.5B-8.8% | $36.8B-4.2% | $38.4B |
| Retained Earnings | -$2.8B-35.9% | -$2.1B+47.6% | -$3.9B+26.2% | -$5.3B+4.4% | -$5.6B+33.2% | -$8.4B-9.7% | -$7.6B-29.4% | -$5.9B+18.5% | -$7.2B-360.2% | $2.8B | $0 | $0 | N/A |
HPE Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $6.4B | $2.9B-32.8% | $4.3B-2.0% | $4.4B-3.6% | $4.6B-21.8% | $5.9B+162.1% | $2.2B-44.0% | $4.0B+34.9% | $3.0B+122.0% | $1.3B-73.6% | $5.1B+38.1% | $3.7B-47.0% | $6.9B-20.9% | $8.7B |
| Capital Expenditures | $2.4B | $2.3B-3.2% | $2.4B-16.3% | $2.8B-9.4% | $3.1B+24.8% | $2.5B+5.0% | $2.4B-16.6% | $2.9B-3.4% | $3.0B-5.8% | $3.1B-4.4% | $3.3B-1.9% | $3.3B-7.6% | $3.6B+45.0% | $2.5B |
| Free Cash Flow | $4.0B | $627.0M-68.2% | $2.0B+23.4% | $1.6B+8.8% | $1.5B-56.3% | $3.4B+2455.9% | -$143.0M-112.5% | $1.1B+14162.5% | $8.0M+100.4% | -$1.8B-201.5% | $1.8B+460.3% | $317.0M-90.4% | $3.3B-47.3% | $6.2B |
| Investing Cash Flow | -$13.2B | -$13.2B-24786.8% | -$53.0M+98.4% | -$3.3B-57.4% | -$2.1B+25.4% | -$2.8B-8.5% | -$2.6B+25.4% | -$3.5B-83.9% | -$1.9B+64.9% | -$5.3B-1376.6% | $419.0M+107.7% | -$5.4B-82.0% | -$3.0B | N/A |
| Financing Cash Flow | $447.0M | $1.0B-83.4% | $6.3B+561.3% | -$1.4B+24.2% | -$1.8B+46.6% | -$3.4B-481.0% | $883.0M+157.0% | -$1.5B+72.3% | -$5.6B-3509.8% | $164.0M+107.0% | -$2.3B-125.1% | $9.3B+344.1% | -$3.8B | N/A |
| Dividends Paid | $721.0M | $684.0M+1.2% | $676.0M+9.2% | $619.0M-0.3% | $621.0M-0.6% | $625.0M+1.1% | $618.0M+1.6% | $608.0M+6.7% | $570.0M+33.2% | $428.0M+14.7% | $373.0M | N/A | N/A | N/A |
| Share Buybacks | $412.0M | $202.0M+34.7% | $150.0M-64.4% | $421.0M-17.8% | $512.0M+140.4% | $213.0M-40.0% | $355.0M-84.2% | $2.2B-37.0% | $3.6B+39.6% | $2.6B-4.0% | $2.7B | $0 | $0 | N/A |
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
HPE Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 54.4%-1.6pp | 56.0%-1.0pp | 56.9%-0.3pp | 57.2%-20.3pp | 77.5%-0.9pp | 78.5% |
| Operating Margin | -1.3%-8.5pp | 7.3%+0.1pp | 7.2%+4.4pp | 2.7%-1.3pp | 4.1%+5.3pp | -1.2%-5.6pp | 4.4%-1.3pp | 5.6%+3.7pp | 1.9%-10.9pp | 12.9%+6.6pp | 6.3%+2.0pp | 4.2%-0.9pp | 5.1% |
| Net Margin | 0.2%-8.4pp | 8.6%+1.6pp | 7.0%+3.9pp | 3.0%-9.3pp | 12.3%+13.5pp | -1.2%-4.8pp | 3.6%-2.6pp | 6.2%+5.0pp | 1.2%-9.3pp | 10.4%+2.5pp | 7.9%+4.9pp | 3.0%-0.6pp | 3.6% |
| Return on Equity | 0.2%-10.2pp | 10.4%+0.8pp | 9.6%+5.2pp | 4.4%-12.8pp | 17.2%+19.2pp | -2.0%-8.2pp | 6.1%-2.8pp | 9.0%+7.5pp | 1.5%-8.6pp | 10.1%+2.7pp | 7.3%+2.9pp | 4.5%-0.9pp | 5.3% |
| Return on Assets | 0.1%-3.5pp | 3.6%+0.1pp | 3.5%+2.0pp | 1.5%-4.4pp | 5.9%+6.5pp | -0.6%-2.6pp | 2.0%-1.4pp | 3.4%+2.9pp | 0.6%-3.4pp | 4.0%+0.9pp | 3.1%+0.6pp | 2.5% | N/A |
| Current Ratio | 1.01-0.3x | 1.29+0.4x | 0.870.0x | 0.880.0x | 0.910.0x | 0.88+0.1x | 0.79-0.2x | 1.00-0.1x | 1.13-0.2x | 1.28-0.1x | 1.36+0.2x | 1.11 | N/A |
| Debt-to-Equity | 0.72+0.2x | 0.54+0.2x | 0.350.0x | 0.40-0.1x | 0.50-0.3x | 0.76+0.2x | 0.55+0.1x | 0.480.0x | 0.430.0x | 0.39-0.1x | 0.45+0.4x | 0.01 | N/A |
| FCF Margin | 1.8%-4.7pp | 6.6%+1.1pp | 5.5%+0.3pp | 5.2%-7.0pp | 12.1%+12.7pp | -0.5%-4.5pp | 3.9%+3.9pp | 0.0%+6.3pp | -6.2%-12.1pp | 5.9%+4.9pp | 1.0%-5.0pp | 6.0%-4.9pp | 10.9% |
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Where Hewlett Packard Enterprise Co Ranks
Frequently Asked Questions
What is Hewlett Packard Enterprise Co's annual revenue?
Hewlett Packard Enterprise Co (HPE) reported $34.3B in total revenue for fiscal year 2025. This represents a 13.8% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Hewlett Packard Enterprise Co's revenue growing?
Hewlett Packard Enterprise Co (HPE) revenue grew by 13.8% year-over-year, from $30.1B to $34.3B in fiscal year 2025.
Is Hewlett Packard Enterprise Co profitable?
Yes, Hewlett Packard Enterprise Co (HPE) reported a net income of $57.0M in fiscal year 2025, with a net profit margin of 0.2%.
What is Hewlett Packard Enterprise Co's EBITDA?
Hewlett Packard Enterprise Co (HPE) had EBITDA of $2.3B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Hewlett Packard Enterprise Co have?
As of fiscal year 2025, Hewlett Packard Enterprise Co (HPE) had $5.8B in cash and equivalents against $17.8B in long-term debt.
What is Hewlett Packard Enterprise Co's operating margin?
Hewlett Packard Enterprise Co (HPE) had an operating margin of -1.3% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Hewlett Packard Enterprise Co's net profit margin?
Hewlett Packard Enterprise Co (HPE) had a net profit margin of 0.2% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Hewlett Packard Enterprise Co pay dividends?
Yes, Hewlett Packard Enterprise Co (HPE) paid $0.52 per share in dividends during fiscal year 2025.
What is Hewlett Packard Enterprise Co's return on equity (ROE)?
Hewlett Packard Enterprise Co (HPE) has a return on equity of 0.2% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Hewlett Packard Enterprise Co's free cash flow?
Hewlett Packard Enterprise Co (HPE) generated $627.0M in free cash flow during fiscal year 2025. This represents a -68.2% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Hewlett Packard Enterprise Co's operating cash flow?
Hewlett Packard Enterprise Co (HPE) generated $2.9B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Hewlett Packard Enterprise Co's total assets?
Hewlett Packard Enterprise Co (HPE) had $75.9B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Hewlett Packard Enterprise Co's capital expenditures?
Hewlett Packard Enterprise Co (HPE) invested $2.3B in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Hewlett Packard Enterprise Co spend on research and development?
Hewlett Packard Enterprise Co (HPE) invested $2.5B in research and development during fiscal year 2025.
What is Hewlett Packard Enterprise Co's current ratio?
Hewlett Packard Enterprise Co (HPE) had a current ratio of 1.01 as of fiscal year 2025, which is considered adequate.
What is Hewlett Packard Enterprise Co's debt-to-equity ratio?
Hewlett Packard Enterprise Co (HPE) had a debt-to-equity ratio of 0.72 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Hewlett Packard Enterprise Co's return on assets (ROA)?
Hewlett Packard Enterprise Co (HPE) had a return on assets of 0.1% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Hewlett Packard Enterprise Co's Altman Z-Score?
Hewlett Packard Enterprise Co (HPE) has an Altman Z-Score of 1.22, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Hewlett Packard Enterprise Co's Piotroski F-Score?
Hewlett Packard Enterprise Co (HPE) has a Piotroski F-Score of 4 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Hewlett Packard Enterprise Co's earnings high quality?
Hewlett Packard Enterprise Co (HPE) reported $57.0M of net income while generating $2.9B in operating cash flow. The ratio between the two is outside the range this page publishes as a per-dollar figure, so both figures are given instead. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Hewlett Packard Enterprise Co cover its interest payments?
Hewlett Packard Enterprise Co (HPE) reported an operating loss of $437.0M against $1.1B in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Hewlett Packard Enterprise Co?
Hewlett Packard Enterprise Co (HPE) scores 36 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.