Dell Technologies Inc (DELL)

Debt-to-assets ratio

		Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Long-term debt	US$ in thousands	19,012,000	23,015,000	21,131,000	32,865,000	44,319,000
Total assets	US$ in thousands	82,089,000	89,611,000	92,735,000	123,415,000	118,861,000
Debt-to-assets ratio		0.23	0.26	0.23	0.27	0.37

February 2, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $19,012,000K ÷ $82,089,000K
= 0.23

The debt-to-assets ratio of Dell Technologies Inc has shown a decreasing trend over the past five years. The ratio was 0.37 in January 2020, indicating that 37% of the company's assets were funded by debt. However, the ratio has decreased steadily since then, reaching its lowest point of 0.23 in both February 2024 and January 2022.

A lower debt-to-assets ratio typically suggests a healthier financial position, as it indicates that the company relies less on debt financing to support its operations and investments. Dell's declining ratio reflects a potential reduction in financial risk and leverage, which could be a positive indicator for investors and creditors.

Overall, the decreasing trend in Dell Technologies Inc's debt-to-assets ratio signals a more conservative approach to managing its capital structure and financial obligations in recent years. It indicates a stronger balance between debt and assets, contributing to the company's financial stability and resilience.