Dell Technologies Inc (DELL)
Liquidity ratios
| Jan 31, 2025 | Feb 2, 2024 | Jan 31, 2024 | Feb 3, 2023 | Jan 31, 2023 | |
|---|---|---|---|---|---|
| Current ratio | 0.78 | 0.74 | 0.74 | 0.82 | 0.76 |
| Quick ratio | 0.08 | 0.25 | 0.15 | 0.52 | 0.17 |
| Cash ratio | 0.08 | 0.15 | 0.15 | 0.17 | 0.17 |
Dell Technologies Inc's liquidity ratios, specifically the current ratio, quick ratio, and cash ratio, provide insights into the company's ability to meet its short-term obligations.
1. Current Ratio: Dell's current ratio has been fluctuating over the past few years, ranging from 0.74 to 0.82. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio below 1 suggests that Dell may have difficulty in meeting its short-term obligations with its existing current assets.
2. Quick Ratio: Dell's quick ratio, also known as the acid-test ratio, has shown a similar fluctuation trend, ranging from 0.08 to 0.52. This ratio is a more stringent measure of liquidity as it excludes inventories from current assets. A quick ratio below 1 indicates that Dell may have difficulty in meeting its short-term obligations using only its most liquid assets.
3. Cash Ratio: Dell's cash ratio has also been on the lower side, ranging from 0.08 to 0.17. The cash ratio specifically measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A low cash ratio may signal potential liquidity constraints for Dell in the short term.
Overall, the fluctuating and relatively low liquidity ratios for Dell Technologies Inc suggest that the company may face challenges in meeting its short-term obligations and may need to closely monitor its liquidity position to ensure financial stability.
See also:
Additional liquidity measure
| Jan 31, 2025 | Feb 2, 2024 | Jan 31, 2024 | Feb 3, 2023 | Jan 31, 2023 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 33.28 | -66.02 | 19.57 | 1.36 | 21.90 |
Based on the provided data, Dell Technologies Inc's cash conversion cycle has shown fluctuation over the years.
As of January 31, 2023, the cash conversion cycle was 21.90 days, indicating that it took Dell approximately 21.90 days to convert its investments in inventory and other resources into cash from sales.
By February 3, 2023, the cash conversion cycle decreased significantly to 1.36 days, suggesting that Dell was able to more efficiently convert its resources into cash during this period.
On January 31, 2024, the cash conversion cycle slightly decreased to 19.57 days, showing a relatively stable performance compared to the previous year.
However, by February 2, 2024, the cash conversion cycle notably decreased to -66.02 days, which could indicate a potential efficiency in managing cash flows or a change in operational processes.
By January 31, 2025, the cash conversion cycle increased to 33.28 days, indicating a longer period for Dell to convert its resources into cash compared to the previous year.
Overall, Dell Technologies Inc's cash conversion cycle has demonstrated variability, with fluctuations in efficiency in converting investments into cash over the analyzed period.