Dell Technologies Inc (DELL)

Short-term

Turnover ratios

The available activity ratios for Dell Technologies Inc are as follows:

1. Inventory Turnover:
- January 31, 2023: 16.67
- February 3, 2023: 16.67
- January 31, 2024: 18.65
- February 2, 2024: 18.65
- January 31, 2025: 10.97

The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times during a period the inventory is sold and replaced. Dell's inventory turnover has been relatively stable, showing a slight increase from 16.67 in 2023 to 18.65 in 2024 before dropping to 10.97 in 2025. A higher inventory turnover ratio generally indicates faster sales and better inventory management.

2. Receivables Turnover:
- January 31, 2023: Not available
- February 3, 2023: 5.64
- January 31, 2024: Not available
- February 2, 2024: 19.04
- January 31, 2025: Not available

The receivables turnover ratio reflects how well a company collects its outstanding receivables during a period. Dell's data shows varying values over the years, with a significant increase from 5.64 in 2023 to 19.04 in 2024. A higher receivables turnover ratio suggests effective credit management and prompt collection of receivables.

3. Payables Turnover:
- January 31, 2023: Not available
- February 3, 2023: 4.28
- January 31, 2024: Not available
- February 2, 2024: 3.48
- January 31, 2025: Not available

The payables turnover ratio illustrates how quickly a company pays its suppliers. Dell's payables turnover ratio indicates the number of times payables are paid and replaced during a period. In this case, the values indicate a decrease from 4.28 in 2023 to 3.48 in 2024. A lower payables turnover ratio may imply a longer time taken to pay suppliers, which could affect relationships and cash flow.

4. Working Capital Turnover:
- January 31, 2023 to January 31, 2025: Not available

The working capital turnover ratio is not available for Dell Technologies Inc for the specified periods. This ratio typically measures how efficiently a company generates revenue relative to its working capital.

In summary, Dell's inventory turnover has shown some stability, while the receivables turnover has seen significant fluctuations. The payables turnover has decreased over the years. It is important for Dell to monitor these ratios to ensure effective management of inventory, receivables, and payables for optimal operational performance.

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Average number of days

Dell Technologies Inc's activity ratios, specifically its Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, provide insights into the efficiency of its operations and management of working capital.

1. Days of Inventory on Hand (DOH):
- Dell's DOH decreased from 21.90 days in January 2023 to 19.57 days in January 2024 and then increased to 33.28 days in January 2025.
- A decrease in DOH indicates that Dell is able to sell its inventory faster, which can result in improved cash flow and lower holding costs.
- However, the increase in DOH from January 2024 to January 2025 suggests that Dell may be carrying excess inventory, which could tie up capital and lead to potential obsolescence risks.

2. Days of Sales Outstanding (DSO):
- Dell's DSO was 64.73 days in February 2023, decreased to 19.17 days in February 2024, and then remained unknown in January 2025.
- A lower DSO indicates that Dell is collecting its accounts receivable more quickly, which can improve liquidity and reduce the risk of bad debts.
- The decrease in DSO from February 2023 to February 2024 suggests more efficient accounts receivable management by Dell.

3. Number of Days of Payables:
- Dell's number of days of payables increased from \u2014 days in January 2023 to 85.26 days in February 2023 and further to 104.76 days in February 2024. The data for January 2025 is unknown.
- An increase in the number of days of payables indicates that Dell is taking longer to pay its suppliers, which can positively impact cash flow by extending payment terms but may strain supplier relationships.
- Dell's increase in days of payables from February 2023 to February 2024 reflects a potential strategy to improve working capital management.

In summary, Dell Technologies Inc's activity ratios show fluctuations over the years, indicating changes in the management of inventory, accounts receivable, and payables. Monitoring these ratios can help evaluate Dell's operational efficiency and working capital management practices.

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See also:

Dell Technologies Inc Short-term (Operating) Activity Ratios

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Long-term

Dell Technologies Inc's long-term activity ratios reflect the efficiency of the company in managing its assets to generate sales revenue.

1. Fixed Asset Turnover: Dell's Fixed Asset Turnover ratio provides insight into how effectively the company utilizes its fixed assets to generate sales. The ratio remained stable at 16.48 for January 31, 2023, and February 3, 2023. However, there was a slight decrease to 13.75 by February 2, 2024, indicating a potential decline in the efficiency of using fixed assets to generate revenue. Data for January 31, 2024, and January 31, 2025, are missing, making it challenging to track the trend over time.

2. Total Asset Turnover: The Total Asset Turnover ratio measures the company's ability to generate sales from all its assets. Dell's Total Asset Turnover ratio was consistent at 1.14 for January 31, 2023, and February 3, 2023, before dropping to 1.08 by January 31, 2024, and staying at the same level by February 2, 2024. The ratio then increased to 1.20 by January 31, 2025, indicating a potential improvement in utilizing total assets to generate sales revenue.

Overall, Dell Technologies Inc's long-term activity ratios suggest variations in asset utilization efficiency over the analyzed period. The company may need to monitor and effectively manage its asset turnover ratios to ensure optimal utilization of resources for revenue generation.

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See also:

Dell Technologies Inc Long-term (Investment) Activity Ratios