Dell Technologies Inc (DELL)

Quick ratio

		Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Cash	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
Receivables	US$ in thousands	4,643,000	18,141,000	18,132,000	17,943,000	17,379,000
Total current liabilities	US$ in thousands	48,494,000	51,654,000	56,219,000	54,132,000	52,456,000
Quick ratio		0.25	0.52	0.49	0.52	0.51

February 2, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($7,366,000K + $10,000K + $4,643,000K) ÷ $48,494,000K
= 0.25

The quick ratio of Dell Technologies Inc has shown a declining trend over the past five years. The quick ratio was at its lowest in the most recent year, at 0.25, indicating a decrease in the company's ability to meet its short-term obligations with its most liquid assets. This could suggest potential liquidity concerns for Dell Technologies Inc, as a quick ratio below 1 typically indicates potential difficulty in meeting short-term liabilities without selling inventory.

Furthermore, the quick ratio has fluctuated over the years but has generally remained below 1, except for the years 2021 and 2023. This suggests that Dell Technologies Inc may have had difficulty maintaining sufficient liquid assets to cover its current liabilities throughout the years under review.

Overall, the declining trend in the quick ratio for Dell Technologies Inc raises concerns about the company's liquidity position and its ability to meet short-term obligations efficiently, which could potentially impact its financial stability and operational flexibility in the future. It would be important for the company to closely monitor and manage its liquidity position to ensure it can meet its short-term obligations effectively.