Dell Technologies Inc (DELL)
Return on total capital
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,404,000 | 4,467,000 | 8,086,000 | 5,403,000 | 6,378,000 |
| Long-term debt | US$ in thousands | 19,012,000 | 23,015,000 | 21,131,000 | 32,865,000 | 44,319,000 |
| Total stockholders’ equity | US$ in thousands | -2,404,000 | -3,122,000 | -1,685,000 | 2,479,000 | -1,574,000 |
| Return on total capital | 32.54% | 22.46% | 41.58% | 15.29% | 14.92% |
February 2, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,404,000K ÷ ($19,012,000K + $-2,404,000K)
= 32.54%
Dell Technologies Inc's return on total capital has shown a favorable trend over the past five years. The company's return on total capital increased from 14.92% in January 2020 to 32.54% in February 2024, indicating a significant improvement in the utilization of both debt and equity capital to generate profits. This upward trend suggests that Dell Technologies has been more effective in generating returns for its investors and creditors over the years. The consistent growth in return on total capital reflects the company's ability to efficiently use its capital to generate profits, which is a positive indicator of its financial performance and management effectiveness.
Peer comparison
Feb 2, 2024