Dell Technologies Inc (DELL)
Payables turnover
| Jan 31, 2025 | Feb 2, 2024 | Jan 31, 2024 | Feb 3, 2023 | Jan 31, 2023 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 73,650,000 | 67,556,000 | 67,556,000 | 79,615,000 | 79,615,000 |
| Payables | US$ in thousands | — | 19,389,000 | — | 18,598,000 | — |
| Payables turnover | — | 3.48 | — | 4.28 | — |
January 31, 2025 calculation
Payables turnover = Cost of revenue ÷ Payables
= $73,650,000K ÷ $—K
= —
The payables turnover ratio for Dell Technologies Inc indicates the efficiency with which the company manages its accounts payable, reflecting how quickly it pays off its suppliers. The formula for payables turnover is the cost of goods sold divided by average accounts payable.
Based on the data provided:
- As of February 3, 2023, the payables turnover ratio was 4.28, suggesting that Dell paid off its suppliers approximately 4.28 times during that fiscal year.
- By February 2, 2024, the ratio decreased to 3.48, indicating a slight decrease in the frequency of paying off suppliers.
The absence of data for January 31, 2023, and January 31, 2024, makes it challenging to track the trend accurately. However, a higher payables turnover ratio generally indicates more efficient management of accounts payable and better liquidity. Dell's decreasing ratio may imply either a change in payment terms with suppliers or a slower turnover of payables, which could potentially impact cash flow and supplier relationships. Further analysis of Dell's financial health and operational efficiency would provide additional insights into the factors affecting the payables turnover ratio.
Peer comparison
Jan 31, 2025