Dell Technologies Inc (DELL)

Inventory turnover

		Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Cost of revenue	US$ in thousands	67,556,000	79,615,000	79,306,000	66,530,000	64,176,000
Inventory	US$ in thousands	3,622,000	4,776,000	5,898,000	3,403,000	3,281,000
Inventory turnover		18.65	16.67	13.45	19.55	19.56

February 2, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $67,556,000K ÷ $3,622,000K
= 18.65

Based on the provided data, Dell Technologies Inc's inventory turnover has shown fluctuating trends over the past five years. Inventory turnover measures how many times a company's inventory has been sold and replaced over a specific period, indicating efficiency in managing inventory.

Dell's inventory turnover has ranged from 13.45 to 19.56 during the period from January 31, 2020, to February 2, 2024. A higher inventory turnover ratio generally indicates that Dell is selling its inventory more frequently, which can be a positive sign of efficient inventory management.

In 2022, Dell's inventory turnover ratio was 13.45, the lowest among the five years, suggesting that the company took longer to sell and replace its inventory. This could indicate overstocking or slower sales during that period.

On the other hand, in 2021 and 2020, Dell had relatively higher inventory turnover ratios of 19.55 and 19.56, respectively. This implies that Dell was able to sell and replace its inventory at a faster rate during those years, showcasing effective inventory management practices.

The latest data for February 2, 2024, shows an inventory turnover ratio of 18.65, indicating an improvement from the previous year. This suggests that Dell is managing its inventory more efficiently, selling and replacing stock at a faster pace compared to the prior year.

Overall, Dell's inventory turnover ratio has varied over the years, reflecting changes in sales patterns, inventory management strategies, and market conditions. An upward trend in inventory turnover is generally favorable, indicating effective inventory control and potentially improved cash flow.