Dell Technologies Inc (DELL)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.72 | 0.73 | 0.74 | 0.76 | 0.77 | 0.80 | 0.82 | 0.75 | 0.77 | 0.78 | 0.80 | 0.82 | 0.79 | 0.77 | 0.80 | 0.77 | 0.76 | 0.82 | 0.70 | 0.71 |
| Quick ratio | 0.40 | 0.40 | 0.25 | 0.26 | 0.26 | 0.17 | 0.52 | 0.41 | 0.44 | 0.44 | 0.49 | 0.60 | 0.54 | 0.56 | 0.52 | 0.56 | 0.51 | 0.26 | 0.51 | 0.17 |
| Cash ratio | 0.09 | 0.12 | 0.15 | 0.17 | 0.16 | 0.17 | 0.17 | 0.10 | 0.10 | 0.13 | 0.17 | 0.32 | 0.22 | 0.27 | 0.18 | 0.24 | 0.21 | 0.26 | 0.18 | 0.17 |
The liquidity ratios of Dell Technologies Inc have shown some fluctuation over the various periods analyzed. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has generally ranged from 0.70 to 0.82 over the past few years. This indicates that Dell may have had some challenges in meeting its short-term obligations consistently, as a ratio below 1 suggests potential liquidity concerns.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has shown greater variability, ranging from 0.17 to 0.60. This implies that Dell's ability to cover its short-term liabilities with its most liquid assets (excluding inventory) has varied significantly, with some periods showing a stronger liquidity position than others.
Lastly, the cash ratio, which focuses solely on the company's ability to cover its current liabilities with cash and cash equivalents, has also demonstrated variation, ranging from 0.09 to 0.32. Dell's cash ratio indicates that while the company may have had periods of stronger cash reserves to meet immediate obligations, there have also been times when its cash position was relatively weaker.
Overall, the liquidity ratios of Dell Technologies Inc suggest that the company has experienced some challenges in maintaining a consistently strong liquidity position, which may warrant further investigation into its cash management and working capital practices.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -27.91 | -29.71 | -66.02 | 35.85 | 36.97 | -66.90 | 1.36 | -14.70 | -20.87 | -27.19 | -32.38 | -29.83 | -24.91 | -28.95 | -24.11 | -24.79 | -22.60 | -84.35 | -26.62 | -92.88 |
The cash conversion cycle of Dell Technologies Inc has shown significant variability over the past several quarters. Throughout the periods, the company has experienced both positive and negative cash conversion cycles.
In general, a negative cash conversion cycle indicates that Dell Technologies Inc has been able to efficiently convert its inventory into cash, collect receivables promptly, and manage payable terms effectively. This reflects a strong liquidity position and efficient working capital management.
However, the variability in the cash conversion cycle suggests that there may be fluctuations in Dell Technologies Inc's operations and potentially in its industry or market conditions. It is important for the company to closely monitor and manage its working capital to ensure consistency and stability in its cash conversion cycle.
Overall, the trend of negative cash conversion cycles for Dell Technologies Inc indicates that the company has been successful in managing its working capital efficiently, optimizing its cash flows, and maintaining strong liquidity levels.