The business behind the dividend
| Measure | HPE | Median | Formula |
|---|---|---|---|
| Return on equity | 0.2% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | -0.9% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $502.00m | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $627.00m | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | -1.3% | 15.0% | Operating income ÷ revenue |
| Net margin | 0.2% | 10.2% | Net income ÷ revenue |
| Debt to equity | 1.03x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | -0.40x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 1.01x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 61.96x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | — | — | Operating cash flow ÷ net income |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 0.2% | 10.4% | 9.6% | 4.4% | 17.2% | -2.0% | 6.1% | 9.0% | 1.5% | 10.1% | 6.1% |
| Return on capital employed | -0.9% | 4.7% | 5.7% | 2.2% | 3.2% | -1.0% | 4.3% | 5.2% | 1.5% | 8.3% | 3.2% |
| Operating margin | -1.3% | 7.3% | 7.2% | 2.7% | 4.1% | -1.2% | 4.4% | 5.6% | 2.0% | 12.9% | 4.1% |
| Net margin | 0.2% | 8.6% | 7.0% | 3.0% | 12.3% | -1.2% | 3.6% | 6.2% | 1.2% | 10.4% | 3.6% |
| Debt to equity | 1.03x | 0.87x | 0.74x | 0.80x | 0.75x | 1.09x | 0.75x | 0.57x | 0.60x | 0.50x | 0.75x |
| Current ratio | 1.01x | 1.29x | 0.87x | 0.88x | 0.91x | 0.88x | 0.79x | 1.00x | 1.13x | 1.28x | 0.91x |
| Cash conversion | — | 1.68x | 2.19x | 5.29x | 1.71x | — | 3.81x | 1.55x | 3.88x | 1.60x | 2.19x |
How it compares in technology
Among the 42 technology companies here measured on free cash flow, Hewlett Packard Enterprise pays out less than 3 of them. The median for that group is 28.6%, against this company’s 109.1%.
Closest on free cash flow
- International Business Machines (IBM) 51.7%
- Power Integrations (POWI) 54.1%
- Universal Display Corp \Pa\ (OLED) 55.4%
- Kulicke & Soffa Industries (KLIC) 56.1%
Same sector and same denominator, so the figures are comparable. All 46 in technology →