Dell Technologies Inc (DELL)

Short-term

Turnover ratios

Inventory Turnover Ratio:
- Dell Technologies Inc's inventory turnover ratio has been relatively stable over the past few quarters, ranging from a low of 11.41 to a high of 22.32.
- The company generally turns over its inventory between 12 to 20 times a year, indicating efficient management of its inventory levels.

Receivables Turnover Ratio:
- Dell's receivables turnover ratio shows some variability with several quarters where data is not available, but the available values range from 5.46 to 19.91.
- This indicates that the company is collecting its receivables at a moderate to high rate, with the higher values suggesting a more efficient collection process.

Payables Turnover Ratio:
- Dell's payables turnover ratio fluctuates, with values ranging from 3.08 to 4.12.
- This indicates that the company is paying off its suppliers at a moderate rate, with some variability in the speed of payment.

Working Capital Turnover Ratio:
- The working capital turnover ratio is not available for any of the periods provided, suggesting that Dell may not be utilizing its working capital in generating sales during these periods.

Overall, Dell appears to have efficient inventory management, relatively effective receivables collection, moderate payment cycles with suppliers, and a lack of information on working capital turnover.

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Average number of days

Dell Technologies Inc's activity ratios provide insights into its efficiency in managing inventory, collecting receivables, and paying its payables.

1. Days of Inventory on Hand (DOH):
- The average days of inventory on hand have shown some volatility over the period, ranging from a low of 16.35 days to a high of 31.98 days.
- Generally, a lower DOH is preferable as it indicates faster inventory turnover and efficient inventory management.
- Dell's DOH has improved from the initial spike in October 2023 to stabilize around 18-20 days in recent periods, suggesting better inventory control.

2. Days of Sales Outstanding (DSO):
- The data provided for DSO is incomplete, with several periods showing no information. This may indicate data availability issues or potential irregularities.
- DSO measures how quickly a company collects payments from its customers, and a lower DSO is typically better as it indicates efficient receivables management.
- Dell's DSO data implies fluctuations and inconsistency in managing accounts receivable, necessitating further investigation into collection practices and customer credit terms.

3. Number of Days of Payables:
- Similar to DSO, the data provided for the number of days of payables is incomplete in several periods, limiting a comprehensive analysis.
- The number of days of payables measures how long a company takes to pay its suppliers, with a longer period indicating a favorable position in terms of working capital management.
- Dell's payables days show variability but generally indicate an extended payment period to suppliers, which could be a strategic approach to managing cash flow.

In conclusion, while Dell Technologies Inc's activity ratios demonstrate improvements in inventory turnover and potential strength in managing payables, the incomplete DSO data limits a thorough assessment of its receivables management efficiency. Further analysis and additional data would be necessary to draw more definitive conclusions on Dell's overall activity performance.

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See also:

Dell Technologies Inc Short-term (Operating) Activity Ratios (Quarterly Data)

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Long-term

Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate sales. Two key ratios that are commonly used for this analysis are the Fixed Asset Turnover ratio and the Total Asset Turnover ratio.

1. Fixed Asset Turnover Ratio:
- Dell Technologies Inc's Fixed Asset Turnover ratio declined from 17.47 in July 2022 to 14.03 in August 2023 before gradually increasing to 15.01 by August 2024.
- The trend indicates a decrease in the efficiency of utilizing fixed assets to generate sales over the period analyzed.
- The company may have experienced challenges in maximizing the productivity of its fixed assets during the specified timeframe.

2. Total Asset Turnover Ratio:
- Dell's Total Asset Turnover ratio fluctuated slightly over the analyzed period, with values ranging from 1.02 to 1.23.
- The ratio remained relatively stable, showing that the company was efficiently generating sales in relation to its total assets.
- The gradual increase in the Total Asset Turnover ratio towards the end of the period may suggest improved asset utilization efficiency.

Overall, while Dell Technologies Inc experienced fluctuations in its Fixed Asset Turnover ratio, the Total Asset Turnover ratio remained relatively stable, indicating a reasonable level of efficiency in generating sales relative to its total asset base. The company may need to focus on improving the utilization of its fixed assets to enhance productivity and profitability in the future.

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See also:

Dell Technologies Inc Long-term (Investment) Activity Ratios (Quarterly Data)