Dell Technologies Inc (DELL)
Payables 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 |
| Payables | US$ in thousands | 24,095,000 | 20,586,000 | 19,389,000 | — | — | 17,796,000 | 18,598,000 | 22,507,000 | 25,339,000 | 25,585,000 | 27,143,000 | 26,772,000 | 23,029,000 | 21,545,000 | 21,572,000 | 19,792,000 | 19,500,000 | 18,432,000 | 20,065,000 | 19,443,000 |
| Payables turnover | 2.96 | 3.36 | 3.48 | — | — | 4.22 | 4.28 | 3.67 | 3.34 | 3.22 | 2.92 | 2.86 | 3.12 | 3.19 | 3.08 | 3.24 | 3.26 | 3.48 | 3.20 | 3.27 |
August 2, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $71,258,000K ÷ $24,095,000K
= 2.96
The payables turnover ratio for Dell Technologies Inc has shown fluctuations over the past few quarters. The ratio indicates the efficiency with which the company is able to manage its accounts payable. A higher payables turnover ratio generally suggests that the company is paying off its suppliers more quickly.
In the most recent quarter (Q2 2024), the payables turnover ratio was 2.96, which was lower than the preceding quarter's ratio of 3.36. This decrease may indicate that Dell took longer to pay off its suppliers compared to the previous quarter.
Looking at trend analysis, the payables turnover ratio has generally been in the range of 3 to 4 over the past few quarters, indicating that Dell has been efficient in managing its accounts payable. However, it is worth noting that in some quarters, like Q1 2020 and Q4 2021, the ratio dipped below 3, suggesting a temporary slowdown in payables turnover efficiency during those periods.
Overall, Dell Technologies Inc has maintained a relatively stable payables turnover ratio, signaling prudent management of its accounts payable process. Investors and analysts may continue to monitor this ratio for any significant deviations that could impact the company's working capital management and financial health.
Peer comparison
Aug 2, 2024