Dell Technologies Inc (DELL)
Profitability ratios
Return on sales
| Jan 31, 2025 | Feb 2, 2024 | Jan 31, 2024 | Feb 3, 2023 | Jan 31, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.93% | 23.60% | 23.60% | 22.18% | 22.18% |
| Operating profit margin | 6.53% | 5.89% | 5.89% | 5.64% | 5.64% |
| Pretax margin | 5.28% | 4.41% | 4.40% | 3.17% | 3.15% |
| Net profit margin | 4.81% | 3.63% | 3.63% | 2.39% | 2.39% |
Based on the provided data, Dell Technologies Inc's profitability ratios show consistent improvement over the years.
- Gross Profit Margin: Dell's gross profit margin has remained relatively stable around 22% to 23% over the three years, indicating the company effectively manages its production costs and pricing strategies.
- Operating Profit Margin: The operating profit margin has also shown a slight increase from 5.64% in January 2023 to 6.53% in January 2025. This suggests Dell has been able to control its operating expenses and improve operational efficiency.
- Pretax Margin: Dell's pretax margin has displayed a gradual upward trend from 3.15% in January 2023 to 5.28% in January 2025, indicating the company's ability to generate higher earnings before taxes.
- Net Profit Margin: The net profit margin, which reflects Dell's profitability after all expenses including taxes, has significantly improved from 2.39% in January 2023 to 4.81% in January 2025. This signals Dell's effectiveness in managing its overall costs and increasing its bottom-line profitability.
Overall, Dell Technologies Inc has demonstrated consistent improvement in its profitability ratios over the years, showcasing strong financial management and operational performance.
Return on investment
| Jan 31, 2025 | Feb 2, 2024 | Jan 31, 2024 | Feb 3, 2023 | Jan 31, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.82% | 6.35% | 6.35% | 6.44% | 6.44% |
| Return on assets (ROA) | 5.76% | 3.91% | 3.91% | 2.73% | 2.73% |
| Return on total capital | — | 32.54% | — | 22.46% | — |
| Return on equity (ROE) | — | — | — | — | — |
Dell Technologies Inc's profitability ratios exhibit positive trends over the specified periods.
- Operating return on assets (Operating ROA) remained relatively stable at around 6.44% from January 2023 to February 2024, before showing a significant improvement to 7.82% by January 2025. This metric indicates that the company generated profits from its core operations efficiently.
- Return on assets (ROA) gradually increased from 2.73% in January 2023 to 5.76% by January 2025, demonstrating Dell's ability to generate earnings relative to its total assets.
- Return on total capital showed notable fluctuations, reaching 22.46% in February 2023, surging to 32.54% by February 2024. The metric was not reported for the other periods, and it reflects the returns generated on the total invested capital (both debt and equity) by the company.
- Return on equity (ROE) was not reported for any of the specified periods, highlighting the absence of this metric in the dataset. ROE provides insight into how efficiently the company is utilizing shareholders' equity to generate profits.
Overall, Dell Technologies Inc's profitability ratios suggest an improving trend in operating efficiency and profitability, with a strong performance in generating returns on assets and total capital. However, the absence of ROE data limits a comprehensive assessment of the company's profitability from an equity standpoint.