Dell Technologies Inc (DELL)
Debt-to-equity ratio
| Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Nov 3, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 30, 2020 | Jul 31, 2020 | May 1, 2020 | Jan 31, 2020 | Nov 1, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 17,811,000 | 19,382,000 | 19,012,000 | 20,119,000 | 20,177,000 | 22,962,000 | 23,015,000 | 20,562,000 | 20,287,000 | 21,197,000 | 21,131,000 | 31,699,000 | 37,167,000 | 37,935,000 | 32,865,000 | 43,325,000 | 43,608,000 | 48,353,000 | 44,319,000 | 44,727,000 |
| Total stockholders’ equity | US$ in thousands | -2,894,000 | -2,822,000 | -2,404,000 | -2,664,000 | -2,772,000 | -3,023,000 | -3,122,000 | -3,469,000 | -2,860,000 | -2,462,000 | -1,685,000 | 8,954,000 | 4,825,000 | 3,487,000 | 2,479,000 | 883,000 | -419,000 | -1,614,000 | -1,574,000 | -1,804,000 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | 3.54 | 7.70 | 10.88 | 13.26 | 49.07 | — | — | — | — |
August 2, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $17,811,000K ÷ $-2,894,000K
= —
The debt-to-equity ratio of Dell Technologies Inc has shown significant fluctuations over the past two years. The ratio was 3.54 as of January 28, 2022, and increased to 7.70 by April 30, 2021, indicating a higher reliance on debt compared to equity in the company's capital structure. This trend continued with a further increase in the ratio to 10.88 as of July 30, 2021, and peaked at 13.26 by October 29, 2021.
The substantial rise in the debt-to-equity ratio suggests that Dell Technologies Inc has been taking on more debt relative to its equity, potentially to fund growth initiatives, acquisitions, or other strategic endeavors. Such a high ratio may raise concerns among investors and creditors about the company's financial leverage and ability to meet its debt obligations.
It is important for Dell Technologies Inc to carefully manage its capital structure and debt levels to maintain financial stability and sustainability in the long term. Monitoring and potentially reducing the debt-to-equity ratio could help mitigate risks associated with excessive leverage and improve the company's overall financial health.
Peer comparison
Aug 2, 2024