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Stock impact report

Is Hewlett Packard Enterprise Company’s (NYSE:HPE) 7.7% Return On Capital Employed Good News? [Yahoo! Finance News]

Hewlett Packard Enterprise Company (HPE) 
Last hewlett packard enterprise company earnings: 3/3 04:05 pm Check Earnings Report
US:NYSE Investor Relations: investors.hpe.com
Today we'll look at Hewlett Packard Enterprise Company NYSE:HPEFirst of all, we'll work out how to calculate ROCE. Second, we'll look at its ROCE compared to similar companies. Then we'll determine how its current liabilities are affecting its ROCE.What is Return On Capital Employed ROCE)?ROCE is a measure of a company's yearly pre-tax profit its return), relative to the capital employed in the business. Generally speaking a higher ROCE is better. Overall, it is a valuable metric that has its flaws. Author Edwin WhitingsaysSo, How Do We Calculate ROCE?Analysts use this formula to calculate return on capital employed:Return on Capital Employed = Earnings Before Interest and Tax EBIT) ÷ Total Assets - Current Liabilities)Or for Hewlett Packard Enterprise:0.077 = US$2.6b ÷ US$52b - US$19b) Based on the trailing twelve months to January 2020.)Therefore,Hewlett Packard Enterprise has an ROCE of 7.7%.See our latest analysis for Hewlett Packard EnterpriseIs Hewlett Packard Enterprise's ROCE Show less Read more
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