Dell Technologies Inc (DELL)

Receivables turnover

		Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Revenue	US$ in thousands	88,425,000	102,301,000	101,197,000	86,670,000	84,815,000
Receivables	US$ in thousands	4,643,000	18,141,000	18,132,000	17,943,000	17,379,000
Receivables turnover		19.04	5.64	5.58	4.83	4.88

February 2, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $88,425,000K ÷ $4,643,000K
= 19.04

The receivables turnover ratio measures how efficiently a company is collecting payments from its customers. Dell Technologies Inc's receivables turnover has shown a significant improvement over the past five years.

In the fiscal year ending February 2, 2024, Dell's receivables turnover ratio stood at 19.04, which indicates that the company collected its accounts receivable approximately 19 times during the year. This sharp increase from the previous year's ratio of 5.64 suggests a substantial improvement in Dell's ability to convert its accounts receivable into cash.

Comparing the most recent ratio to the ratios from the prior years, Dell has consistently shown steady growth in its receivables turnover efficiency. The trend indicates that Dell has been managing its accounts receivable more effectively, potentially through improved credit policies, better collection processes, or more efficient customer relationships.

Overall, Dell Technologies Inc's increasing receivables turnover ratios reflect a positive trend in its management of accounts receivable and suggest improved liquidity and financial health.