Dell Technologies Inc (DELL)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 91,839,000 | 89,747,000 | 88,425,000 | 91,146,000 | 93,616,000 | 97,107,000 | 102,301,000 | 105,254,000 | 106,957,000 | 104,723,000 | 101,197,000 | 97,355,000 | 92,520,000 | 89,182,000 | 86,670,000 | 86,552,000 | 87,807,000 | 90,324,000 | 92,154,000 | 91,963,000 |
| Receivables | US$ in thousands | 16,359,000 | 13,223,000 | 4,643,000 | 4,540,000 | 4,807,000 | — | 18,141,000 | 16,549,000 | 18,486,000 | 16,764,000 | 18,132,000 | 19,147,000 | 17,869,000 | 15,889,000 | 17,943,000 | 16,249,000 | 16,498,000 | — | 17,379,000 | — |
| Receivables turnover | 5.61 | 6.79 | 19.04 | 20.08 | 19.47 | — | 5.64 | 6.36 | 5.79 | 6.25 | 5.58 | 5.08 | 5.18 | 5.61 | 4.83 | 5.33 | 5.32 | — | 5.30 | — |
August 2, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $91,839,000K ÷ $16,359,000K
= 5.61
The receivables turnover ratio for Dell Technologies Inc has fluctuated over the historical period provided, ranging from 4.83 to 20.08, with an average turnover ratio of approximately 6. This ratio indicates how efficiently the company is collecting its accounts receivable during a specific period.
A higher receivables turnover ratio suggests that Dell is collecting outstanding customer payments more quickly, which is generally a positive sign of effective credit management. Conversely, a lower ratio could indicate potential issues with collecting receivables in a timely manner, possibly leading to liquidity challenges.
The significant increase in the receivables turnover ratio between Feb 2024 and Nov 2023 from 5.64 to 20.08 is notable, suggesting a substantial improvement in Dell's ability to collect receivables efficiently during that period. This could indicate enhanced credit policies or more effective collection measures in place.
On the other hand, the reduction in the ratio back to lower levels in subsequent periods may merit further investigation to understand the reasons behind the decline. Overall, tracking the receivables turnover ratio over time provides insights into Dell's effectiveness in managing its accounts receivable and collecting payments from customers promptly.
Peer comparison
Aug 2, 2024