Dell Technologies Inc (DELL)
Cash ratio
| Jan 31, 2025 | Feb 2, 2024 | Jan 31, 2024 | Feb 3, 2023 | Jan 31, 2023 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,633,000 | 7,366,000 | 7,366,000 | 8,607,000 | 8,879,000 |
| Short-term investments | US$ in thousands | — | 10,000 | 40,000 | 33,000 | — |
| Total current liabilities | US$ in thousands | 46,527,000 | 48,494,000 | 48,494,000 | 51,654,000 | 51,654,000 |
| Cash ratio | 0.08 | 0.15 | 0.15 | 0.17 | 0.17 |
January 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,633,000K
+ $—K)
÷ $46,527,000K
= 0.08
The cash ratio of Dell Technologies Inc has shown a gradual decline over the period from January 31, 2023, to January 31, 2025. The cash ratio, which measures the company's ability to cover its short-term liabilities using its cash and cash equivalents, decreased from 0.17 in January 2023 to 0.08 in January 2025.
A cash ratio below 1 indicates that the company may have difficulty meeting its short-term obligations solely with cash on hand. The decreasing trend in Dell's cash ratio may raise concerns about its liquidity position and ability to cover immediate financial obligations. Management should closely monitor cash reserves and consider strategies to improve liquidity in order to maintain financial stability and meet short-term payment obligations in a timely manner.
Peer comparison
Jan 31, 2025