Dell Technologies Inc. (NYSE:DELL)

A significant decrease in goodwill and intangible assets is observed over the analyzed period. The largest component, goodwill, experienced a substantial reduction from US$40,829 million in January 2021 to US$19,547 million by January 2026. Definite-lived intangible assets, both gross and net, also demonstrate consistent declines throughout the period. Indefinite-lived trade names remain relatively stable, while customer relationships and developed technology show decreasing values, though at a slower pace than goodwill.

Goodwill

Goodwill decreased dramatically between January 2021 and January 2022, falling from US$40,829 million to US$19,770 million. Following this initial reduction, the decline slowed, with relatively small fluctuations between US$19,676 million and US$19,700 million from February 2023 to February 2024. A further decrease is noted in the later years, reaching US$19,120 million in January 2025 and US$19,547 million in January 2026. This suggests potential impairment charges or strategic divestitures impacting the reported goodwill value.

Definite-Lived Intangible Assets

Gross definite-lived intangible assets decreased from US$39,167 million in January 2021 to US$27,044 million in January 2026. Accumulated amortization consistently increased over the period, rising from negative US$28,493 million to negative US$25,566 million. Consequently, net definite-lived intangible assets experienced a more pronounced decline, decreasing from US$10,674 million to US$1,478 million over the six-year period. This indicates a significant portion of the initial value of these assets has been expensed through amortization.

Customer Relationships & Developed Technology

Both customer relationships and developed technology exhibited downward trends. Customer relationships decreased from US$22,394 million in January 2021 to US$16,644 million in January 2026. Developed technology decreased from US$15,488 million in January 2021 to US$9,525 million in January 2026. The rate of decline appears relatively consistent for both items throughout the period.

Indefinite-Lived Trade Names

Indefinite-lived trade names remained relatively constant between January 2021 and January 2026, fluctuating slightly between US$3,755 million and US$3,055 million. The value stabilized around US$3,055 million in the final two years of the analyzed period.

Total Intangible Assets

Total intangible assets decreased from US$14,429 million in January 2021 to US$4,533 million in January 2026, mirroring the overall trend of declining goodwill and definite-lived intangible assets. This represents a substantial reduction in the reported value of intangible assets over the analyzed timeframe.

The combined effect of these trends resulted in a decrease in total goodwill and intangible assets from US$55,258 million in January 2021 to US$24,080 million in January 2026. The consistent declines across multiple intangible asset categories suggest a systematic approach to asset valuation or potential strategic shifts impacting the company’s intangible asset portfolio.

An examination of the financial information reveals significant adjustments to total assets and stockholders’ equity over the six-year period. These adjustments appear to be primarily related to the removal of goodwill and intangible assets from the balance sheet, resulting in substantial differences between reported and adjusted figures.

Total Assets

Reported total assets demonstrate considerable volatility, decreasing from US$123,415 million in 2021 to US$82,089 million in 2024, before increasing to US$101,286 million in 2026. However, the adjusted total assets exhibit a more consistent, albeit still declining, trend over the same period, moving from US$82,586 million in 2021 to US$62,389 million in 2024, and then increasing to US$81,739 million in 2026. The difference between reported and adjusted assets widens initially, then narrows, suggesting a concentrated impact from the adjustments in the earlier years. The magnitude of the adjustment to total assets is substantial, consistently representing a significant portion of the reported value.

Stockholders’ Equity (Deficit)

Reported stockholders’ equity transitions from a positive value of US$2,479 million in 2021 to a deficit of US$2,470 million in 2026. The adjusted stockholders’ equity consistently reflects a deficit throughout the period, beginning at a deficit of US$38,350 million in 2021 and decreasing to a deficit of US$22,017 million in 2026. The adjustments to equity are considerably larger in absolute terms than the reported equity figures, indicating a material impact on the net asset position. The trend in adjusted equity suggests a slower rate of decline in the deficit compared to the initial values.

The consistent and substantial difference between reported and adjusted figures for both total assets and stockholders’ equity strongly suggests a systematic removal of goodwill and/or intangible assets from the balance sheet. The initial large adjustments followed by smaller adjustments in later years could indicate that the majority of the write-downs occurred early in the period. The increasing reported total assets in the later years, coupled with a more moderate increase in adjusted total assets, implies that new assets are being added, but the impact of these additions is offset by the continued presence of the adjustments.

The negative impact on stockholders’ equity is particularly noteworthy, as the adjustments contribute significantly to the overall deficit position. This warrants further investigation into the nature and justification of these adjustments, as they have a material effect on the company’s reported financial position.

The financial metrics demonstrate a consistent impact from adjusting for goodwill when evaluating operational efficiency and profitability. Removing goodwill from the asset base results in notably higher asset turnover and return on assets figures compared to the reported values. Trends observed across the period suggest an improving operational performance when goodwill is excluded from the calculation.

Total Asset Turnover

Reported total asset turnover fluctuates between 0.76 and 1.14 over the observed period, with a peak in 2023. However, the adjusted total asset turnover consistently exceeds the reported figure, beginning at 1.14 in 2021 and rising to 1.58 in 2025 before decreasing slightly to 1.39 in 2026. This indicates that the company generates more sales revenue per dollar of assets when goodwill is not considered. The adjusted ratio demonstrates an overall upward trend from 2021 to 2025, suggesting increasing efficiency in asset utilization.

Financial Leverage

Reported financial leverage is only available for 2021, registering at 49.78. Adjusted financial leverage figures are not present in the provided information, preventing a comparative analysis.

Return on Equity (ROE)

Reported ROE is only available for 2021, at 131.10%. Adjusted ROE figures are absent, hindering a comprehensive assessment of equity returns after goodwill adjustment.

Return on Assets (ROA)

Reported ROA begins at 2.63% in 2021, increases to 6.00% in 2022, then declines to 2.73% in 2023, before rising again to 3.91% in 2024 and further to 5.76% and 5.86% in 2025 and 2026 respectively. The adjusted ROA consistently surpasses the reported ROA, starting at 3.94% in 2021 and reaching 7.57% in 2025, with a slight decrease to 7.26% in 2026. This difference highlights the significant impact of goodwill on the reported profitability of assets. The adjusted ROA demonstrates a generally positive trend, indicating improved profitability when goodwill is excluded.

In summary, the adjustments for goodwill consistently yield higher values for asset turnover and return on assets. The absence of adjusted financial leverage and ROE data limits a complete understanding of the overall impact. However, the available information suggests that the presence of goodwill significantly depresses reported profitability and efficiency metrics.

An examination of the financial information reveals distinct trends in both total asset values and associated turnover ratios over the six-year period. Reported total assets experienced a significant decrease from 2021 to 2022, followed by a period of relative stability with slight declines through 2024. A notable increase is then observed in 2025 and 2026. Adjusted total assets mirror this pattern, exhibiting a similar initial decline and subsequent recovery, though the magnitude of change differs.

Reported Total Asset Turnover

The reported total asset turnover ratio demonstrates an increasing trend overall, beginning at 0.76 in 2021 and reaching 1.20 in 2025 before decreasing slightly to 1.12 in 2026. The initial increase from 2021 to 2022 is substantial, and the ratio remains above 1.0 for the remainder of the period, suggesting improved efficiency in generating sales from reported assets. The slight dip in 2026 warrants further investigation.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio consistently exceeds the reported ratio across all periods. This ratio exhibits a stronger and more consistent upward trend, increasing from 1.14 in 2021 to a peak of 1.58 in 2025, before decreasing to 1.39 in 2026. The consistent increase suggests a growing ability to generate sales relative to assets when goodwill and intangible assets are adjusted. The decline in 2026 mirrors the trend observed in the reported ratio.

The divergence between reported and adjusted total asset turnover ratios highlights the impact of goodwill and intangible assets on asset efficiency metrics. The adjusted ratio, which excludes these items, consistently presents a more favorable picture of asset utilization. The parallel declines in both ratios during 2026 suggest a potential slowdown in sales generation relative to assets, despite the increase in total asset values.

The substantial increase in both reported and adjusted total assets in 2025 and 2026, coupled with the slight decrease in turnover ratios in 2026, suggests that asset growth may not be translating directly into proportional sales growth during that year. Further analysis is recommended to understand the nature of these asset increases and their impact on operational performance.

An examination of the financial information reveals significant trends in total assets and stockholders’ equity, impacting calculated financial leverage. Reported total assets decreased from US$123,415 million in January 2021 to US$82,089 million in February 2024, before increasing to US$101,286 million by January 2026. Adjusted total assets demonstrate a similar decreasing trend over the same period, falling from US$82,586 million to US$62,389 million, then rising to US$81,739 million. Stockholders’ equity consistently reports a deficit, worsening from US$2,479 million in January 2021 to a deficit of US$3,122 million in February 2023, and remaining negative through January 2026 at a deficit of US$2,470 million. The adjusted stockholders’ equity also reflects a substantial and persistent deficit, moving from a deficit of US$38,350 million in January 2021 to a deficit of US$22,017 million by January 2026.

Reported Total Assets

Reported total assets experienced a substantial decline between January 2021 and February 2024, decreasing by approximately 33.4%. A subsequent recovery is observed between February 2024 and January 2026, with assets increasing by approximately 23.8%.

Adjusted Total Assets

Adjusted total assets followed a similar pattern to reported total assets, with a decrease of approximately 22.1% between January 2021 and February 2024. An increase of approximately 31.1% is then noted between February 2024 and January 2026.

Reported Stockholders’ Equity

Reported stockholders’ equity transitioned from a positive value to a consistent deficit. The deficit widened considerably between January 2021 and February 2023, before experiencing a slight improvement through January 2026, though remaining negative.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity consistently reflects a significant deficit throughout the observed period. While the magnitude of the deficit decreased between January 2021 and January 2026, it remained substantial.

Reported Financial Leverage

Reported financial leverage was calculated at 49.78 in January 2021, with subsequent values unavailable. This suggests a high degree of financial risk based on reported figures for that period.

Adjusted Financial Leverage

Values for adjusted financial leverage are not provided for any of the observed periods. Calculation of this metric would be necessary to assess financial risk based on the adjusted figures.

The consistent deficits in both reported and adjusted stockholders’ equity, coupled with the fluctuations in total assets, suggest a complex financial position. The absence of adjusted financial leverage calculations limits a complete assessment of the company’s risk profile based on the adjusted figures.

The reported stockholders’ equity exhibits a volatile pattern over the observed period. Beginning at US$2,479 million in January 2021, it decreased to a deficit of US$1,685 million in January 2022, then further declined to a deficit of US$3,122 million in February 2023. A slight improvement was noted in February 2024, with the deficit reducing to US$2,404 million, followed by a further reduction to US$1,482 million in January 2025. However, the deficit increased again to US$2,470 million by January 2026.

A significantly different trend is observed in the adjusted stockholders’ equity. This metric consistently reflects a substantial deficit throughout the period, starting at US$38,350 million in January 2021. The adjusted equity decreased to US$21,455 million in January 2022, and continued to decline, reaching US$22,798 million in February 2023. Subsequent years show a gradual decrease to US$22,104 million in February 2024, US$20,602 million in January 2025, and US$22,017 million in January 2026. The magnitude of the adjusted equity deficit remains considerably larger than the reported equity deficit across all observed dates.

Reported Return on Equity (ROE)

The reported ROE is available only for January 29, 2021, registering at 131.10%. No subsequent values are provided for this metric.

Adjusted Return on Equity (ROE)

Values for the adjusted ROE are not provided for any of the observed dates. The absence of this metric hinders a comprehensive assessment of the company’s profitability when considering the adjustments made to stockholders’ equity.

The substantial difference between reported and adjusted equity suggests the presence of significant adjustments, potentially related to intangible assets or goodwill. The consistent negative adjusted equity raises concerns about the company’s financial leverage and overall solvency when these adjustments are taken into account. The lack of adjusted ROE values prevents a direct evaluation of the impact of these adjustments on profitability.

The analysis reveals distinct trends in both reported and adjusted total assets, alongside their corresponding returns on assets, over the six-year period. Reported total assets demonstrate considerable fluctuation, initially decreasing from 123,415 to 92,735 before stabilizing and then increasing to 101,286. Adjusted total assets exhibit a similar decreasing trend, albeit less pronounced, falling from 82,586 to 60,626, followed by a recovery to 81,739.

Reported Return on Assets (ROA)

Reported ROA shows volatility. It begins at 2.63%, rises significantly to 6.00%, then declines to 2.73%. A subsequent increase is observed, reaching 3.91% and further improving to 5.76% and 5.86%. This suggests a period of initial underperformance followed by improving profitability relative to reported assets.

Adjusted Return on Assets (ROA)

Adjusted ROA presents a different pattern. It starts at 3.94%, peaks at 7.62%, then decreases to 3.49%. A recovery is then evident, with adjusted ROA rising to 5.15%, 7.57%, and finally 7.26%. The adjusted ROA consistently exceeds the reported ROA, indicating that the exclusion of certain asset components results in a more favorable profitability picture.

The divergence between reported and adjusted ROA suggests that a significant portion of the reported total assets may not be contributing proportionally to profitability. The consistent difference between the two ROA figures highlights the impact of these assets, potentially including goodwill and intangible assets, on the overall return metrics. The upward trend in both ROA measures towards the end of the period indicates improving operational efficiency or a more effective utilization of assets, whether reported or adjusted.

Asset Trends

The initial decline in both reported and adjusted total assets could be attributed to asset sales, write-downs, or a re-evaluation of asset values. The subsequent increase in reported total assets, particularly in the final period, may reflect new acquisitions or investments. The recovery in adjusted total assets suggests a stabilization of the core asset base after the initial reduction.

Overall, the period demonstrates a dynamic asset base and fluctuating profitability. The consistently higher adjusted ROA warrants further investigation into the nature of the assets excluded from the adjusted calculation to understand their impact on the company’s financial performance.