Dell Technologies Inc (DELL)
Solvency ratios
| Jan 31, 2025 | Feb 2, 2024 | Jan 31, 2024 | Feb 3, 2023 | Jan 31, 2023 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.23 | 0.00 | 0.26 | 0.00 |
| Debt-to-capital ratio | — | 1.14 | — | 1.16 | — |
| Debt-to-equity ratio | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — |
Dell Technologies Inc's solvency ratios indicate a strong financial position in terms of debt management. The Debt-to-assets ratio, which measures the proportion of total assets financed by debt, shows a consistent trend of 0.00 for January 31, 2023, January 31, 2024, and January 31, 2025, suggesting the company has not relied heavily on debt to finance its assets.
The Debt-to-capital ratio, which assesses the proportion of total capital that is funded by debt, was 0.26 on February 3, 2023, and 0.23 on February 2, 2024, indicating a reasonable level of debt utilization in the capital structure. However, the ratios for other periods are not available.
The Debt-to-equity ratio and Financial leverage ratio were not provided for any of the periods, so we cannot analyze the company's debt in relation to equity or the overall leverage used to support Dell's operations.
Overall, based on the available data, Dell Technologies Inc appears to have a low reliance on debt to support its operations, as evidenced by the Debt-to-assets ratio remaining low and relatively stable over the specified periods.
Coverage ratios
| Jan 31, 2025 | Feb 2, 2024 | Jan 31, 2024 | Feb 3, 2023 | Jan 31, 2023 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | 3.60 | 3.52 | 3.66 | 4.72 |
Dell Technologies Inc's interest coverage ratio has shown fluctuating trends over the past few years. As of January 31, 2023, the interest coverage ratio was 4.72, indicating that the company generated enough operating income to cover its interest expenses roughly 4.72 times over. However, this ratio decreased to 3.66 by February 3, 2023, suggesting a slight weakening in the company's ability to cover its interest obligations.
The trend continued to decline as of January 31, 2024, with the interest coverage ratio dropping to 3.52. This downward trend suggests that Dell's ability to cover interest expenses with operating income deteriorated further. Although there was a slight uptick to 3.60 by February 2, 2024, the ratio remained relatively low compared to previous levels.
The most concerning observation is the interest coverage ratio falling to 0.00 as of January 31, 2025. A ratio of 0.00 indicates that Dell Technologies Inc's operating income was insufficient to cover its interest expenses, raising questions about the company's financial health and ability to meet its debt obligations. This sharp decline highlights a potentially significant issue regarding the company's ability to service its debt through operational earnings.
In conclusion, the fluctuating trend in Dell's interest coverage ratio raises concerns about the company's ability to sustainably meet its interest obligations in the periods under review, with the ratio eventually reaching a critical level of 0.00, signaling potential financial distress. Further analysis and monitoring of Dell Technologies Inc's financial performance and debt management strategies would be necessary to assess its long-term financial viability.