Hewlett Packard Enterprise Co (FRA:2HP) Inventory Turnover : 0.80 (As of Jan. 2024)

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What is Hewlett Packard Enterprise Co Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Hewlett Packard Enterprise Co's Cost of Goods Sold for the three months ended in Jan. 2024 was €3,946 Mil. Hewlett Packard Enterprise Co's Average Total Inventories for the quarter that ended in Jan. 2024 was €4,958 Mil. Hewlett Packard Enterprise Co's Inventory Turnover for the quarter that ended in Jan. 2024 was 0.80.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Hewlett Packard Enterprise Co's Days Inventory for the three months ended in Jan. 2024 was 114.66.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Hewlett Packard Enterprise Co's Inventory-to-Revenue for the quarter that ended in Jan. 2024 was 0.80.

Hewlett Packard Enterprise Co Inventory Turnover Historical Data

The historical data trend for Hewlett Packard Enterprise Co's Inventory Turnover 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.

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Hewlett Packard Enterprise Co Inventory Turnover Chart

Hewlett Packard Enterprise Co Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Inventory Turnover

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8.28

7.10

5.15

4.22

3.73

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
Inventory Turnover	Get a 7-Day Free Trial															1.00	0.99	1.01	1.07	0.80

Hewlett Packard Enterprise Co Inventory Turnover Calculation

Hewlett Packard Enterprise Co's Inventory Turnover for the fiscal year that ended in Oct. 2023 is calculated as

	Inventory Turnover (A: Oct. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Oct. 2023 )	/ (	(Total Inventories (A: Oct. 2022 )	+	Total Inventories (A: Oct. 2023 ))	/	count )
=	17894.512	/ (	(5238.415	+	4362.829)	/	2 )
=	17894.512	/	4800.622
=	3.73

Hewlett Packard Enterprise Co's Inventory Turnover for the quarter that ended in Jan. 2024 is calculated as

	Inventory Turnover (Q: Jan. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jan. 2024 )	/ (	(Total Inventories (Q: Oct. 2023 )	+	Total Inventories (Q: Jan. 2024 ))	/	count )
=	3945.564	/ (	(4362.829	+	5552.982)	/	2 )
=	3945.564	/	4957.9055
=	0.80

Hewlett Packard Enterprise Co (FRA:2HP) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Hewlett Packard Enterprise Co's Days Inventory for the three months ended in Jan. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jan. 2024 )	/	Cost of Goods Sold (Q: Jan. 2024 )	*	Days in Period
	=	4957.9055	/	3945.564	*	365 / 4
	=	114.66

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Hewlett Packard Enterprise Co's Inventory to Revenue for the quarter that ended in Jan. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	4957.9055	/	6201.09
	=	0.80

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Hewlett Packard Enterprise Co Inventory Turnover Related Terms

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Hewlett Packard Enterprise Co (FRA:2HP) Business Description

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Comparable Companies

Traded in Other Exchanges

HPE:USA HPE:Mexico 1HPE:Italy 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.

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