Dell Technologies Inc (DELL)

Cash ratio

		Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Cash and cash equivalents	US$ in thousands	7,366,000	8,607,000	9,477,000	9,508,000	9,302,000
Short-term investments	US$ in thousands	10,000	33,000	86,000	449,000	12,000
Total current liabilities	US$ in thousands	48,494,000	51,654,000	56,219,000	54,132,000	52,456,000
Cash ratio		0.15	0.17	0.17	0.18	0.18

February 2, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($7,366,000K + $10,000K) ÷ $48,494,000K
= 0.15

The cash ratio of Dell Technologies Inc has been relatively stable over the past five years, ranging from 0.15 to 0.18. This ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A cash ratio of 0.15 to 0.18 suggests that Dell may have a moderate level of liquidity, with a sufficient amount of cash on hand to meet its immediate obligations. However, it's also important to consider other factors such as the composition of current assets and the nature of the business when assessing the overall liquidity position of the company. Overall, Dell's consistent cash ratio over the years indicates a prudent approach to managing its short-term liquidity needs.