Dell Technologies Inc (DELL)
Liquidity ratios
| Jan 31, 2025 | Oct 31, 2024 | Aug 2, 2024 | Jul 31, 2024 | May 3, 2024 | Apr 30, 2024 | Feb 2, 2024 | Jan 31, 2024 | Nov 3, 2023 | Oct 31, 2023 | Aug 4, 2023 | Jul 31, 2023 | May 5, 2023 | Apr 30, 2023 | Feb 3, 2023 | Jan 31, 2023 | Oct 31, 2022 | Oct 28, 2022 | Jul 31, 2022 | Jul 29, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.78 | 0.77 | 0.72 | 0.72 | 0.73 | 0.73 | 0.74 | 0.74 | 0.76 | 0.70 | 0.77 | 0.71 | 0.80 | 0.74 | 0.82 | 0.76 | 0.77 | 0.75 | 0.72 | 0.77 |
| Quick ratio | 0.08 | 0.11 | 0.40 | 0.09 | 0.40 | 0.13 | 0.25 | 0.15 | 0.26 | 0.17 | 0.26 | 0.17 | 0.17 | 0.17 | 0.52 | 0.17 | 0.29 | 0.41 | 0.11 | 0.44 |
| Cash ratio | 0.08 | 0.11 | 0.09 | 0.09 | 0.12 | 0.13 | 0.15 | 0.15 | 0.17 | 0.17 | 0.16 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.29 | 0.10 | 0.11 | 0.10 |
Dell Technologies Inc's liquidity ratios indicate a mixed picture of the company's ability to meet its short-term obligations. The current ratio has fluctuated over the period under review, ranging from 0.70 to 0.82, with the latest figure standing at 0.78 as of January 31, 2025. A current ratio below 1 suggests that the company may have difficulty meeting its short-term liabilities with its current assets alone.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also varied significantly, ranging from 0.08 to 0.52. As of January 31, 2025, the quick ratio is at 0.08, indicating Dell Technologies Inc may struggle to cover its short-term obligations without relying on inventory.
Lastly, the cash ratio, which focuses solely on the most liquid assets like cash and cash equivalents, has shown relatively stable figures between 0.08 and 0.29. As of January 31, 2025, the cash ratio is at 0.08, suggesting the company's ability to cover its short-term liabilities with its cash holdings alone is limited.
Overall, while the current and cash ratios show some fluctuation, the quick ratio consistently indicates potential liquidity challenges for Dell Technologies Inc, and the company may need to carefully manage its cash flow and working capital to ensure it can meet its short-term obligations effectively.
See also:
Additional liquidity measure
| Jan 31, 2025 | Oct 31, 2024 | Aug 2, 2024 | Jul 31, 2024 | May 3, 2024 | Apr 30, 2024 | Feb 2, 2024 | Jan 31, 2024 | Nov 3, 2023 | Oct 31, 2023 | Aug 4, 2023 | Jul 31, 2023 | May 5, 2023 | Apr 30, 2023 | Feb 3, 2023 | Jan 31, 2023 | Oct 31, 2022 | Oct 28, 2022 | Jul 31, 2022 | Jul 29, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 32.01 | 31.98 | -25.96 | 30.35 | -29.59 | 25.46 | -65.36 | 19.23 | 36.14 | 18.12 | 39.56 | 19.06 | -71.47 | 19.95 | 0.67 | 22.26 | 16.35 | -15.06 | 25.98 | -16.00 |
The cash conversion cycle of Dell Technologies Inc has shown fluctuations over the periods analyzed. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash from sales.
The analysis reveals that Dell's cash conversion cycle has been negative on several occasions, indicating that the company is able to convert its investments into cash relatively quickly. This could be due to efficient inventory management and prompt collection of accounts receivable.
However, there are also periods where the cash conversion cycle is positive, suggesting that Dell may be taking longer to convert its investments into cash. This could be attributed to factors such as delayed payments from customers or an increase in the time it takes to sell inventory.
Overall, Dell Technologies Inc should aim to maintain a healthy cash conversion cycle by optimizing its inventory management, streamlining its accounts receivable processes, and improving its overall efficiency in converting investments into cash.