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.
Peer comparison
Feb 2, 2024