Dell Technologies Inc (DELL)

Cash conversion cycle

		Jan 31, 2025	Feb 2, 2024	Jan 31, 2024	Feb 3, 2023	Jan 31, 2023
Days of inventory on hand (DOH)	days	33.28	19.57	19.57	21.90	21.90
Days of sales outstanding (DSO)	days	—	19.17	—	64.73	—
Number of days of payables	days	—	104.76	—	85.26	—
Cash conversion cycle	days	33.28	-66.02	19.57	1.36	21.90

January 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 33.28 + — – —
= 33.28

The cash conversion cycle of Dell Technologies Inc fluctuated over the period analyzed. In January 31, 2023, the company's cash conversion cycle stood at 21.90 days, indicating that on average, it took Dell approximately 21.90 days to convert its investments in inventory and other resources into cash receipts from sales. By February 3, 2023, the cycle decreased significantly to 1.36 days, suggesting a more efficient conversion of resources into cash.

On January 31, 2024, the cash conversion cycle decreased further to 19.57 days, pointing towards continued efficiency in managing the conversion process. However, by February 2, 2024, the cycle dramatically turned negative to -66.02 days, which might indicate potentially aggressive revenue recognition or significant changes in the working capital management processes.

By January 31, 2025, the cash conversion cycle rebounded to 33.28 days, signifying a longer period for the company to convert resources into cash receipts. Overall, these fluctuations in the cash conversion cycle of Dell Technologies Inc suggest varying levels of effectiveness in managing its working capital and operational processes during the analyzed period.