Hewlett Packard Enterprise Co (Hewlett Packard Enterprise Co) Debt-to-EBITDA

: 2.61 (As of Jan. 2024)

View and export this data going back to 2015. Start your Free Trial

Debt-to-EBITDA measures a company's ability to pay off its debt.

Hewlett Packard Enterprise Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $4,957 Mil. Hewlett Packard Enterprise Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $7,840 Mil. Hewlett Packard Enterprise Co's annualized EBITDA for the quarter that ended in Jan. 2024 was $4,912 Mil. Hewlett Packard Enterprise Co's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 was 2.61.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Hewlett Packard Enterprise Co's Debt-to-EBITDA or its related term are showing as below:

HPE' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.17 Med: 2.78 Max: 7.1
Current: 2.58

During the past 12 years, the highest Debt-to-EBITDA Ratio of Hewlett Packard Enterprise Co was 7.10. The lowest was 0.17. And the median was 2.78.

HPE's Debt-to-EBITDA is ranked worse than
61.03% of 1732 companies
in the Hardware industry
Industry Median: 1.76 vs HPE: 2.58

Hewlett Packard Enterprise Co Debt-to-EBITDA Historical Data

The historical data trend for Hewlett Packard Enterprise Co's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hewlett Packard Enterprise Co Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Debt-to-EBITDA

3.24

7.10

2.28

3.81

2.70

Hewlett Packard Enterprise Co Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Debt-to-EBITDA																2.48	2.67	2.69	2.75	2.61

Competitive Comparison

For the Communication Equipment subindustry, Hewlett Packard Enterprise Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Hewlett Packard Enterprise Co Debt-to-EBITDA Distribution

For the Hardware industry and Technology sector, Hewlett Packard Enterprise Co's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Hewlett Packard Enterprise Co's Debt-to-EBITDA falls into.

Hewlett Packard Enterprise Co Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Hewlett Packard Enterprise Co's Debt-to-EBITDA for the fiscal year that ended in Oct. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(5062	+	8453)	/	5002
	=	2.70

Hewlett Packard Enterprise Co's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(4957	+	7840)	/	4912
	=	2.61

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Jan. 2024) EBITDA data.

Hewlett Packard Enterprise Co (NYSE:HPE) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

Hewlett Packard Enterprise Co Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Hewlett Packard Enterprise Co's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

Hewlett Packard Enterprise Co (Hewlett Packard Enterprise Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Hewlett Packard Enterprise Co (NYSE:HPE) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

HPE:Mexico 1HPE:Italy 2HP:Germany 2HP:Germany 2HP:Germany 2HP:Germany H1PE34:Brazil

Address

1701 East Mossy Oaks Road, Spring, TX, USA, 77389

Website

https://www.hpe.com

Hewlett Packard Enterprise is an information technology vendor that provides hardware and software to enterprises. Its primary product lines are compute servers, storage arrays, and networking equipment; it also has a high-performance computing business. HPE's stated goal is to be a complete edge-to-cloud company, and its portfolio enables hybrid clouds and hyperconverged infrastructure. It uses a primarily outsourced manufacturing model and employs 60,000 people worldwide.

Executives

Jeremy Cox	officer: SVP Controller and CTO	3000 HANOVER STREET, PALO ALTO CA 94304
Phil Mottram	officer: President, Intelligent Edge	11445 COMPAQ CENTER DRIVE WEST, HOUSTON TX 77070
Kirt P Karros	officer: SVP, Finance & Treasurer	12400 HIGH BLUFF DR. SUITE 600, SAN DIEGO CA 92130
Justin Hotard	officer: SVP, GM, HPC and AI	11445 COMPAQ CENTER DRIVE WEST, HOUSTON TX 77070
Neil B Macdonald	officer: SVP, GM of Compute	6280 AMERICA CENTER DRIVE, SAN JOSE CA 95002
Fidelma Russo	officer: EVP, GM, HC and CTO	C/O IRON MOUNTAIN INCORPORATED, ONE FEDERAL STREET, BOSTON MA 02110
John F Schultz	officer: EVP, COLO	C/O HEWLETT-PACKARD COMPANY, 3000 HANOVER STREET, PALO ALTO CA 94304
Gerri Gold	officer: EVP, Pres & CEO Financial Serv	4 INDUSTRIAL WAY WEST, SUITE 300, EATONTOWN NJ 07724
Alan Richard May	officer: EVP, Chief People Officer	3000 HANOVER STREET, PALO ALTO CA 94304
Antonio F Neri	officer: President and CEO	3000 HANOVER STREET, PALO ALTO CA 94304
Black Thomas E Jr	officer: SVP, GM of Storage	6280 AMERICA CENTER DRIVE, SAN JOSE CA 95002
Bethany Mayer	director	C/O IXIA, 26601 W. AGOURA ROAD, CALABASAS CA 91302
Tarek Robbiati	officer: EVP & CFO	6200 SPRINT PARKWAY, OVERLAND PARK KS 66251
Jean M. Hobby	director	10000 WEHRLE DRIVE, CLARENCE NY 14031
Frank A Damelio	director	C/O PFIZER INC., 235 EAST 42ND ST., NEW YORK NY 10017