Dell Technologies Inc (DELL)
Profitability ratios
Return on sales
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 23.60% | 22.18% | 21.63% | 23.24% | 24.33% |
| Operating profit margin | 5.89% | 5.64% | 4.60% | 4.25% | 2.79% |
| Pretax margin | 4.41% | 3.17% | 6.47% | 3.87% | 4.77% |
| Net profit margin | 3.63% | 2.39% | 5.50% | 3.75% | 5.44% |
Dell Technologies Inc has shown consistent performance in terms of profitability ratios over the past five years. The gross profit margin has shown slight fluctuations but remained relatively stable, ranging from 21.63% to 24.33%. This indicates the company's ability to efficiently manage its production costs and generate profits from its core operations.
The operating profit margin has also shown steady improvement, increasing from 2.79% to 5.89% over the five-year period. This suggests that Dell has been successful in controlling its operating expenses and optimizing its operational efficiency to generate higher profits.
The pretax margin has been more volatile, with significant fluctuations from 3.17% to 6.47%. This indicates that Dell's profitability before tax has been impacted by various factors such as changes in revenue, expenses, and tax provisions over the years.
The net profit margin has shown a similar trend to the pretax margin, with fluctuations from 2.39% to 5.50%. Despite the variability, Dell has been able to maintain a positive net profit margin, reflecting its ability to generate profits after accounting for all expenses, including taxes.
Overall, Dell Technologies Inc has demonstrated an ability to effectively manage its profitability metrics, with improvements in operating and net profit margins over the years, indicating a sound financial performance and efficient business operations.
Return on investment
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.35% | 6.44% | 5.02% | 2.99% | 1.99% |
| Return on assets (ROA) | 3.91% | 2.73% | 6.00% | 2.63% | 3.88% |
| Return on total capital | 32.54% | 22.46% | 41.58% | 15.29% | 14.92% |
| Return on equity (ROE) | — | — | — | 131.10% | — |
Dell Technologies Inc's profitability ratios indicate a positive trend over the past five years. The Operating return on assets (Operating ROA) has shown consistent improvement, reaching 6.35% in February 2024 from 1.99% in January 2020. This suggests the company's ability to generate operating income from its assets has been steadily increasing.
Return on assets (ROA) has also improved over the same period, with a notable increase from 2.63% in January 2021 to 3.91% in February 2024. This indicates Dell's effectiveness in generating overall profits from its total assets.
Return on total capital has shown a significant rise, reaching 32.54% in February 2024 compared to 14.92% in January 2020. This metric indicates the company's ability to generate returns for both equity and debt holders.
Return on equity (ROE) data is unavailable for the earlier years but shows 131.10% in January 2021. While ROE is not available for more recent years, its high value in 2021 indicates that Dell was effectively using shareholders' equity to generate profits.
Overall, Dell Technologies Inc's profitability ratios demonstrate an improving trend over the years, indicating efficient management of assets, capital, and equity, leading to enhanced profitability for the company.