Dell Technologies Inc (DELL)

Inventory turnover

		Aug 2, 2024	May 3, 2024	Feb 2, 2024	Nov 3, 2023	Aug 4, 2023	May 5, 2023	Feb 3, 2023	Oct 28, 2022	Jul 29, 2022	Apr 29, 2022	Jan 28, 2022	Oct 29, 2021	Jul 30, 2021	Apr 30, 2021	Jan 29, 2021	Oct 30, 2020	Jul 31, 2020	May 1, 2020	Jan 31, 2020	Nov 1, 2019
Cost of revenue (ttm)	US$ in thousands	71,258,000	69,090,000	67,556,000	69,837,000	71,748,000	75,187,000	79,615,000	82,706,000	84,582,000	82,312,000	79,306,000	76,620,000	71,951,000	68,812,000	66,530,000	64,145,000	63,642,000	64,109,000	64,176,000	63,605,000
Inventory	US$ in thousands	5,953,000	4,782,000	3,622,000	3,381,000	3,584,000	4,016,000	4,776,000	6,172,000	5,883,000	6,277,000	5,898,000	5,442,000	4,223,000	3,828,000	3,403,000	3,393,000	3,602,000	3,616,000	3,281,000	3,257,000
Inventory turnover		11.97	14.45	18.65	20.66	20.02	18.72	16.67	13.40	14.38	13.11	13.45	14.08	17.04	17.98	19.55	18.91	17.67	17.73	19.56	19.53

August 2, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $71,258,000K ÷ $5,953,000K
= 11.97

The inventory turnover ratio for Dell Technologies Inc has shown a generally upward trend over the past two years, indicating an improvement in the company's efficiency in managing its inventory. The latest inventory turnover ratio of 11.97 suggests that the company turned over its inventory approximately 11.97 times during the most recent fiscal year.

A higher inventory turnover ratio signifies that Dell is selling its inventory more frequently, which can be indicative of effective inventory management and a reduced risk of obsolete stock. The ratio has fluctuated between 11.97 and 20.66 over the past two years, with occasional peaks and troughs.

Overall, the inventory turnover trend reflects Dell's ability to efficiently manage its inventory levels, which can positively impact the company's liquidity and profitability. It is important for Dell to continue monitoring and improving its inventory turnover to optimize its operations and financial performance.