Dell Technologies Inc (DELL)
Solvency ratios
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.23 | 0.26 | 0.23 | 0.27 | 0.37 |
| Debt-to-capital ratio | 1.14 | 1.16 | 1.09 | 0.93 | 1.04 |
| Debt-to-equity ratio | — | — | — | 13.26 | — |
| Financial leverage ratio | — | — | — | 49.78 | — |
The solvency ratios of Dell Technologies Inc indicate the company's ability to meet its long-term financial obligations and manage its debt levels effectively.
- Debt-to-assets ratio: Dell's debt-to-assets ratio has improved gradually over the past five years, decreasing from 0.37 in January 2020 to 0.23 in February 2024. This indicates that Dell's debt relative to its total assets has decreased, reflecting a stronger financial position.
- Debt-to-capital ratio: The debt-to-capital ratio shows a fluctuating trend, with a peak at 1.16 in February 2023 and a decrease to 1.14 by February 2024. This ratio suggests that Dell relies on debt for about 114% of its capital structure, which is relatively stable over the years.
- Debt-to-equity ratio: The data provided does not include the debt-to-equity ratio for all years, but it shows a significant decrease in January 2021 to 13.26, indicating that Dell had high debt relative to equity at that time.
- Financial leverage ratio: The financial leverage ratio, not available for recent years, was reported as 49.78 in January 2021. This indicates that Dell had a high level of financial leverage at that time, primarily financed through debt.
Overall, Dell Technologies Inc has shown improvements in its debt management and solvency ratios over the past years, reflected in a decreasing trend in the debt-to-assets ratio. However, the company's high reliance on debt, as indicated by the debt-to-capital ratio, suggests that careful monitoring of debt levels is essential for maintaining a healthy financial position.
Coverage ratios
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.60 | 3.66 | 5.24 | 2.63 | 2.73 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
From the data provided:
- Feb 2, 2024: Interest coverage ratio was 3.60
- Feb 3, 2023: Interest coverage ratio was 3.66
- Jan 28, 2022: Interest coverage ratio was 5.24
- Jan 29, 2021: Interest coverage ratio was 2.63
- Jan 31, 2020: Interest coverage ratio was 2.73
The trend in Dell Technologies Inc's interest coverage ratio shows some fluctuations over the years. In general, the ratios have been above 2, indicating that the company has been able to meet its interest payments comfortably. The peak in interest coverage ratio was observed in Jan 28, 2022, at 5.24, suggesting a strong ability to cover interest expenses. However, the ratios in Jan 29, 2021, and Jan 31, 2020, were lower at 2.63 and 2.73, respectively, which may raise some concerns about Dell's ability to cover interest costs during those periods.
Overall, Dell Technologies Inc's interest coverage ratio has shown some variability, but generally, the company has managed to maintain a satisfactory level of coverage of its interest expenses with its operating earnings.