Dell Technologies Inc (DELL)

Fixed asset turnover

		Jan 31, 2025	Feb 2, 2024	Jan 31, 2024	Feb 3, 2023	Jan 31, 2023
Revenue	US$ in thousands	95,567,000	88,425,000	88,425,000	102,301,000	102,301,000
Property, plant and equipment	US$ in thousands	—	6,432,000	—	6,209,000	6,209,000
Fixed asset turnover		—	13.75	—	16.48	16.48

January 31, 2025 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $95,567,000K ÷ $—K
= —

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. Looking at Dell Technologies Inc's fixed asset turnover ratio over the past few years, we see that it was 16.48 in January 31, 2023, and remained consistent at the same level in February 3, 2023. This indicates that Dell was able to generate $16.48 in revenue for each dollar of fixed assets during that period.

In January 31, 2024, and January 31, 2025, the fixed asset turnover ratio data is not available (denoted by "—"), which could be due to various reasons such as changes in reporting or the company's financial structure.

In February 2, 2024, the fixed asset turnover ratio decreased to 13.75. This decline suggests that Dell's efficiency in utilizing its fixed assets to generate revenue decreased compared to the previous periods.

Overall, a higher fixed asset turnover ratio indicates better utilization of fixed assets to generate sales. Dell's consistent high ratio in 2023 is a positive sign of efficient asset management. Monitoring this ratio over time can provide insights into Dell's operational efficiency and investment in fixed assets.