What is Hewlett Packard Enterprise Co Sloan Ratio %?
Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
As of Jan. 2024, Hewlett Packard Enterprise Co has a Sloan Ratio of -1.06%, indicating the company is in the safe zone and there is no funny business with accruals.
Hewlett Packard Enterprise Co Sloan Ratio % Historical Data
* 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.
Competitive Comparison of Hewlett Packard Enterprise Co's Sloan Ratio %
For the Communication Equipment subindustry, Hewlett Packard Enterprise Co's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Hewlett Packard Enterprise Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Hewlett Packard Enterprise Co's Sloan Ratio % falls into.
Hewlett Packard Enterprise Co Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Hewlett Packard Enterprise Co's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 418 (Apr. 2023 ) + 464 (Jul. 2023 ) + 642 (Oct. 2023 ) + 387 (Jan. 2024 ) = $1,911 Mil.
Hewlett Packard Enterprise Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was 889 (Apr. 2023 ) + 1525 (Jul. 2023 ) + 2843 (Oct. 2023 ) + 64 (Jan. 2024 ) = $5,321 Mil.
Hewlett Packard Enterprise Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -933 (Apr. 2023 ) + -1016 (Jul. 2023 ) + -98 (Oct. 2023 ) + -740 (Jan. 2024 ) = $-2,787 Mil.
* 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.
Hewlett Packard Enterprise Co (NYSE:HPE) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Jan. 2024, Hewlett Packard Enterprise Co has a Sloan Ratio of -1.06%, indicating the company is in the safe zone and there is no funny business with accruals.
Hewlett Packard Enterprise Co Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Hewlett Packard Enterprise Co's Sloan Ratio % 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
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.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HPE has been successfully added to your 