Dell Technologies Inc (DELL)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.22 | 0.24 | 0.23 | 0.24 | 0.24 | 0.27 | 0.26 | 0.24 | 0.23 | 0.24 | 0.23 | 0.23 | 0.30 | 0.31 | 0.27 | 0.36 | 0.36 | 0.40 | 0.37 | 0.38 |
| Debt-to-capital ratio | 1.19 | 1.17 | 1.14 | 1.15 | 1.16 | 1.15 | 1.16 | 1.20 | 1.16 | 1.13 | 1.09 | 0.78 | 0.89 | 0.92 | 0.93 | 0.98 | 1.01 | 1.03 | 1.04 | 1.04 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | 3.54 | 7.70 | 10.88 | 13.26 | 49.07 | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | 15.15 | 25.43 | 34.92 | 49.78 | 134.71 | — | — | — | — |
Dell Technologies Inc's solvency ratios reflect the company's ability to meet its long-term financial obligations. The trends in the solvency ratios indicate the company's financial health and risk levels.
1. Debt-to-assets ratio: Dell's debt-to-assets ratio has been relatively stable over the past two years, ranging between 0.22 and 0.40. This ratio suggests that, on average, around 22-40% of the company's assets are financed by debt, with a lower ratio indicating a stronger financial position.
2. Debt-to-capital ratio: Dell's debt-to-capital ratio has also shown consistent trends, hovering between 1.09 and 1.20. This ratio indicates that the company relies on debt for around 109-120% of its total capital, implying a moderate level of financial leverage.
3. Debt-to-equity ratio: Unfortunately, there are missing data points for Dell's debt-to-equity ratio, making it challenging to assess the company's reliance on debt compared to equity. However, the available data shows a significant increase in this ratio over time, reaching 49.07 in January 2021, suggesting a higher proportion of debt relative to equity.
4. Financial leverage ratio: Similarly, there are missing data points for Dell's financial leverage ratio. However, the available data indicates a substantial increase in this ratio over time, reaching as high as 134.71 in January 2021. This surge in financial leverage suggests that Dell has been increasingly relying on debt to finance its operations, potentially indicating higher risk levels.
Overall, Dell Technologies Inc's solvency ratios demonstrate a moderate level of debt usage, with stable debt-to-assets and debt-to-capital ratios. However, the increasing trend in the debt-to-equity and financial leverage ratios highlights the company's growing reliance on debt, signaling potential risks associated with its capital structure and financial obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.70 | 3.60 | 3.60 | 3.34 | 2.99 | 3.01 | 3.66 | 3.05 | 6.21 | 5.97 | 5.24 | 6.52 | 3.89 | 3.31 | 2.63 | 4.24 | 3.55 | 3.29 | 3.16 | 0.84 |
Interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. Dell Technologies Inc's interest coverage ratio has shown fluctuation over the periods provided, with the ratio ranging from as low as 0.84 to as high as 6.52. Generally, a higher interest coverage ratio indicates a stronger ability to meet interest obligations.
Analyzing the trend, the interest coverage ratio has been above 3 for most periods, indicating that Dell has generated sufficient operating income to cover its interest expenses. The highest interest coverage ratio of 6.52 was reported on January 28, 2022, and the lowest ratio of 0.84 was recorded on November 1, 2019, suggesting a degree of variability in the company's ability to cover interest costs.
It is important for investors and stakeholders to monitor Dell's interest coverage ratio over time to assess the company's financial health and ability to service its debt obligations.