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Hewlett Packard Enterprise Co (XTER:2HP) Gross Margin % : 30.81% (As of Oct. 2024)


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What is Hewlett Packard Enterprise Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Hewlett Packard Enterprise Co's Gross Profit for the three months ended in Oct. 2024 was €2,392 Mil. Hewlett Packard Enterprise Co's Revenue for the three months ended in Oct. 2024 was €7,764 Mil. Therefore, Hewlett Packard Enterprise Co's Gross Margin % for the quarter that ended in Oct. 2024 was 30.81%.


The historical rank and industry rank for Hewlett Packard Enterprise Co's Gross Margin % or its related term are showing as below:

XTER:2HP' s Gross Margin % Range Over the Past 10 Years
Min: 29.92   Med: 32.48   Max: 35.14
Current: 32.79


During the past 13 years, the highest Gross Margin % of Hewlett Packard Enterprise Co was 35.14%. The lowest was 29.92%. And the median was 32.48%.

XTER:2HP's Gross Margin % is ranked better than
65.9% of 2422 companies
in the Hardware industry
Industry Median: 24.655 vs XTER:2HP: 32.79

Hewlett Packard Enterprise Co had a gross margin of 30.81% for the quarter that ended in Oct. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Hewlett Packard Enterprise Co was 1.00% per year.


Hewlett Packard Enterprise Co Gross Margin % Historical Data

The historical data trend for Hewlett Packard Enterprise Co's Gross Margin % 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 Gross Margin % Chart

Hewlett Packard Enterprise Co Annual Data
Trend Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.39 33.75 33.36 35.14 32.79

Hewlett Packard Enterprise Co Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 34.81 36.37 32.98 31.63 30.81

Competitive Comparison of Hewlett Packard Enterprise Co's Gross Margin %

For the Communication Equipment subindustry, Hewlett Packard Enterprise Co's Gross Margin %, along with its competitors' market caps and Gross Margin % 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's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Hewlett Packard Enterprise Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Hewlett Packard Enterprise Co's Gross Margin % falls into.



Hewlett Packard Enterprise Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Hewlett Packard Enterprise Co's Gross Margin for the fiscal year that ended in Oct. 2024 is calculated as

Gross Margin % (A: Oct. 2024 )=Gross Profit (A: Oct. 2024 ) / Revenue (A: Oct. 2024 )
=9068 / 27656.586
=(Revenue - Cost of Goods Sold) / Revenue
=(27656.586 - 18588.582) / 27656.586
=32.79 %

Hewlett Packard Enterprise Co's Gross Margin for the quarter that ended in Oct. 2024 is calculated as


Gross Margin % (Q: Oct. 2024 )=Gross Profit (Q: Oct. 2024 ) / Revenue (Q: Oct. 2024 )
=2392.3 / 7764.444
=(Revenue - Cost of Goods Sold) / Revenue
=(7764.444 - 5372.136) / 7764.444
=30.81 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Hewlett Packard Enterprise Co  (XTER:2HP) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Hewlett Packard Enterprise Co had a gross margin of 30.81% for the quarter that ended in Oct. 2024 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Hewlett Packard Enterprise Co Gross Margin % Related Terms

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


Hewlett Packard Enterprise Co Business Description

Address
1701 East Mossy Oaks Road, Spring, TX, USA, 77389
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. Its portfolio enables hybrid clouds and hyperconverged infrastructure. It uses a primarily outsourced manufacturing model and employs 60,000 people worldwide.

Hewlett Packard Enterprise Co Headlines

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