Dell Technologies Inc. (NYSE:DELL)

The analysis of the financial data over the reported periods reveals a consistent downward trend across most categories related to goodwill and intangible assets.

Goodwill

Goodwill showed a significant decrease from US$41,691 million in early 2020 to US$19,120 million by early 2025, indicating potentially substantial impairment charges, divestitures, or other revaluations over the years.

Customer relationships

Customer relationships declined steadily from US$22,950 million in 2020 to US$16,642 million in 2025, reflecting possible amortization or loss of value related to customer contracts or agreements.

Developed technology

This asset category halved in value from US$15,707 million to approximately US$9,500 million across the six-year span, suggesting amortization impacts or technological obsolescence.

Trade names (definite-lived)

Values for definite-lived trade names slightly diminished from US$1,306 million to US$875 million then stabilized around that figure, indicating limited changes after initial amortization.

Definite-lived intangible assets, gross

Markedly declined from nearly US$39,963 million to approximately US$27,017 million, reinforcing trends of amortization and asset disposals.

Accumulated amortization

Accumulated amortization increased in magnitude (negative values) from -US$25,611 million to about -US$25,084 million, which initially rose but showed a slight reduction towards the final period, suggesting adjustments or lower amortization expenses in recent years.

Definite-lived intangible assets, net

The net value of definite-lived intangible assets decreased dramatically from US$14,352 million to US$1,933 million, indicating accelerated amortization or impairments.

Indefinite-lived trade names

Indefinite-lived trade names declined moderately from US$3,755 million to US$3,055 million, a smaller decrease compared to other categories, reflecting relative stability with minor impairments or revaluations.

Intangible assets (overall)

Total intangible assets decreased from US$18,107 million in 2020 to US$4,988 million in 2025, consistent with the pronounced amortization and impairment trends noted above.

Goodwill and intangible assets (combined)

The combined figure showed a steep reduction from US$59,798 million to US$24,108 million, reinforcing the overarching observation of substantial value decline in these asset classes over the period.

Overall, the data reflects a significant diminution of recorded goodwill and intangible assets, likely from a combination of amortization policies, impairments, and possibly disposition of business units or asset write-downs. The trend indicates increasing conservatism or diminished asset values relative to initial recognition, which could impact future profitability and balance sheet valuations.

The data reveals several key trends in the financial position and performance over the periods analyzed. There is a general decline in total assets, both reported and goodwill adjusted, indicating a contraction in asset base over time. Reported total assets decreased from $118,861 million in 2020 to $79,746 million in 2025, while adjusted total assets declined from $77,170 million to $60,626 million during the same timeframe. This suggests a continued reduction in asset scale, even after removing goodwill.

Stockholders’ equity, on both reported and adjusted bases, shows significant volatility and persistent deficits. Reported equity moved from a deficit of $1,574 million in 2020 to a positive $2,479 million in 2021, but subsequently reverted to deficits again, reaching negative $1,482 million by 2025. Adjusted equity remained substantially negative throughout the periods, improving from negative $43,265 million in 2020 to negative $20,602 million in 2025, but never crossing into positive territory. This pattern implies ongoing challenges related to accumulated losses, liabilities, or asset valuation impacts after excluding goodwill.

Net income attributable to the entity exhibits fluctuations without a clear directional trend, though it remains positive each year. Reported net income peaked at $5,563 million in 2022, dropped to $2,442 million in 2023, and then rebounded to $4,592 million in 2025. The adjusted net income matches the reported figures, as the goodwill adjustment does not appear to impact profitability measures. These swings suggest variable operational performance or episodic factors influencing profitability.

Total Assets:

Overall declining trend, with a reduction of roughly 33% in reported assets and about 21% in adjusted assets from 2020 to 2025.

Stockholders’ Equity:

Persistent equity deficits on an adjusted basis, with a partial recovery observed in reported figures predominantly in 2021, followed by recurring negative results.

Net Income:

Positive net income throughout all years, with notable variability and a high in 2022 before declining and partially recovering.

In summary, the financial data suggest a shrinking asset base and ongoing equity deficits, particularly when adjusted for goodwill. Despite this, the company has managed to sustain positive net income across the period, though with volatility. These patterns may highlight structural financial challenges alongside operational profitability fluctuations.

The financial data reveals several notable trends over the analyzed periods, focusing on profitability, efficiency, and performance metrics.

Net Profit Margin

The reported net profit margin fluctuated throughout the years, starting at 5.01% in early 2020, dipping to a low of 2.39% in early 2023, before recovering to 4.81% by early 2025. The adjusted net profit margins mirror the reported values, indicating no significant adjustments affecting this metric.

Total Asset Turnover

The reported total asset turnover exhibits an upward trend, rising from 0.78 in 2020 to 1.20 by early 2025, which suggests improving efficiency in using assets to generate revenue. The adjusted total asset turnover, consistently higher than the reported figures, also demonstrates a similar increasing pattern from 1.19 to 1.58. This indicates that after adjustments, the company's assets are utilized even more effectively.

Financial Leverage

Data on financial leverage is limited and only available for early 2021, showing a high ratio of 49.78 reported. No further data is available for other periods or adjustments, preventing a full assessment of leverage trends.

Return on Equity (ROE)

The reported ROE is only available for early 2021, with an exceptionally high value of 131.1%, suggesting an anomalous or highly leveraged period. There are no available adjusted ROE figures or data for other periods, restricting trend analysis for this measure.

Return on Assets (ROA)

Reported ROA declines from 3.88% in 2020 to 2.63% in 2021, then peaks at 6.00% in 2022. It decreases again in early 2023 to 2.73%, followed by subsequent recovery to 5.76% by 2025. Adjusted ROA values consistently exceed reported figures, beginning at 6.25% in 2020 and ultimately reaching 7.57% in 2025. This pattern indicates stronger operational efficiency once goodwill and other adjustments are considered.

Overall, the data reflects volatility in profitability metrics, with both net profit margin and ROA showing periods of decline and recovery. Asset turnover metrics demonstrate steady improvement, especially after adjustments, implying enhanced asset utilization. The limited data on financial leverage and ROE restricts conclusions on leverage impact and equity returns. Adjusted figures consistently show better performance than reported ones, suggesting significant positive effects of adjustments like goodwill removal on measured financial ratios.

The analysis of the reported and goodwill adjusted financial data over the six-year period reveals notable variability in both net income and net profit margins. The data reflects fluctuations which could be indicative of the company's operational performance and external market conditions during these years.

Net Income Trends

The reported net income attributable to the company shows a general pattern of volatility. It started at 4,616 million US dollars in 2020, then declined to 3,250 million in 2021, followed by a recovery to 5,563 million in 2022. Subsequently, there was a sharp decrease to 2,442 million in 2023. The figure then improved to 3,211 million in 2024 and further increased significantly to 4,592 million in 2025.

Adjusted net income mirrors the exact values of the reported net income, suggesting that goodwill adjustments did not materially impact the profit figures over the observed timeframe.

Net Profit Margin Patterns

The reported net profit margin exhibits a similar pattern of fluctuations corresponding to the net income trends. The margin peaked at 5.01% in 2020 before dropping to a low of 3.45% in 2021. It then rose to the highest margin of 5.5% in 2022, but fell sharply to 2.39% in 2023. Thereafter, it showed a recovery to 3.63% in 2024 and increased further to 4.81% in 2025.

The adjusted net profit margin follows an identical trajectory, reinforcing the conclusion that the margin variations are consistent regardless of goodwill adjustments.

Insights and Observations

The fluctuations in net income and net profit margins over the years suggest episodic challenges and recoveries in the company's profitability. The sharp declines in 2021 and especially in 2023 could signify strategic, operational, or market-driven pressures during those periods. Conversely, the rebounds in 2022 and 2025 point to effective countermeasures or favorable conditions that improved financial outcomes.

The consistency between reported and adjusted figures indicates that goodwill adjustments have had negligible impact on the financial results presented, underscoring the reliability of the reported income and margin trends for performance assessment.

The analyzed data reveals distinct trends regarding asset values and asset turnover ratios over the period from January 31, 2020, to January 31, 2025. The figures include both the reported and goodwill-adjusted values, providing insight into the company's balance sheet and operational efficiency.

Total Assets

The reported total assets demonstrate a consistent decline from US$118,861 million in 2020 to US$79,746 million in 2025. This represents a decrease of approximately 33%. Similarly, the adjusted total assets, which exclude goodwill, also decrease steadily from US$77,170 million to US$60,626 million over the same period. The percentage decrease in adjusted total assets is roughly 21%. Both measures indicate a contraction of the asset base, with the decrease in reported total assets being more pronounced, suggesting a significant component of goodwill reduction or disposal of intangible assets.

Total Asset Turnover

The reported total asset turnover ratio shows a general upward trend, increasing from 0.78 in 2020 to 1.20 in 2025. This indicates improved efficiency in using assets to generate revenue, with occasional increases notably in the period from 2021 to 2022 and from 2023 onwards. The adjusted total asset turnover ratio, which more accurately reflects core operational efficiency by excluding goodwill, corroborates this trend with an increase from 1.19 in 2020 to 1.58 in 2025. This suggests an even stronger enhancement in asset utilization when goodwill is excluded, highlighting greater operational efficiency gains over the period.

Insights

The declining asset base, combined with rising asset turnover ratios, suggests the company is increasingly efficient in generating revenue from a smaller asset base. The more pronounced increase in adjusted asset turnover implies operational improvements independent of non-physical asset factors like goodwill. This could be indicative of asset optimization strategies, divestitures of less productive assets, or improved operational controls leading to higher revenue per unit of asset. However, the reduction in total assets, especially reported assets, could also reflect strategic restructuring or asset sales that may have longer-term implications on growth potential.

The financial data reveals several notable trends in the company's reported and goodwill adjusted figures over the six-year period from early 2020 to early 2025.

Total Assets

Reported total assets have shown a consistent downward trend, declining from US$118,861 million in January 2020 to US$79,746 million by January 2025. This represents a notable reduction in the asset base over the period.

Similarly, adjusted total assets, which exclude goodwill, also declined steadily from US$77,170 million in 2020 to US$60,626 million in 2025, indicating a contraction in the core asset value of the company after goodwill adjustments.

Stockholders’ Equity (Deficit)

The reported stockholders’ equity fluctuates between positive and negative values throughout the years. It starts as a deficit of US$ -1,574 million in 2020, improves to a positive US$2,479 million in 2021, and then declines back into a negative deficit, reaching US$ -1,482 million by 2025. This oscillation suggests volatility in the company’s net worth from the shareholders' perspective.

In contrast, the adjusted stockholders’ equity, which excludes goodwill, remains consistently negative and shows a substantial improvement over time from a deficit of US$ -43,265 million in 2020 to US$ -20,602 million in 2025. Despite remaining in deficit, the trend indicates a decreasing gap in adjusted equity, potentially reflecting stronger core capital position improvements or asset write-downs adjustment effects.

Financial Leverage

Financial leverage data is incomplete, with only a single reported ratio of 49.78 available, presumably for the earliest year or a certain date. The absence of additional leverage ratios makes it difficult to assess trends or changes in leverage over time from the adjusted or reported figures.

Overall, the data points to a contracting asset base and persistent challenges regarding equity positions when adjusted for goodwill. The volatility in reported equity and the consistent improvement in adjusted equity deficits suggest that goodwill and intangible asset valuations have a significant impact on the company’s reported financial health. The reduction in both reported and adjusted total assets underscores a trend towards a leaner asset structure, which may reflect strategic asset sales, impairments, or other capital management actions during this period.

The financial data reveals several notable trends in the annual performance and equity position of the company over the six-year period.

Net Income

The reported net income attributable to the company fluctuated substantially. It declined from $4,616 million in the 2020 fiscal year to $3,250 million in 2021, then experienced a considerable increase to $5,563 million in 2022. This was followed by a sharp decrease to $2,442 million in 2023. The net income subsequently rebounded to $3,211 million in 2024 and returned near to its 2020 level at $4,592 million in 2025. The adjusted net income values mirrored this pattern exactly, suggesting minimal goodwill or other adjustments impacting net income.

Stockholders’ Equity (Reported)

The reported total stockholders’ equity displayed significant volatility and negative values for much of the period. In 2020, equity was negative at -$1,574 million but improved to a positive $2,479 million in 2021. The figure then reverted to negative values, dropping to -$1,685 million in 2022 and worsening further to -$3,122 million in 2023. Although improvement occurred in the last two years, equity remained negative at -$2,404 million in 2024 and -$1,482 million in 2025. This suggests ongoing challenges in generating or maintaining equity based on reported figures.

Stockholders’ Equity (Adjusted)

Adjusted stockholders’ equity, which likely excludes goodwill and other intangible assets, was consistently negative and showed a gradually improving trend. It moved from a substantial deficit of -$43,265 million in 2020 to -$38,350 million in 2021, then improved markedly to -$21,455 million in 2022. However, the deficit slightly increased again in 2023 to -$22,798 million before improving marginally to -$22,104 million in 2024 and -$20,602 million in 2025. Despite improvements, the adjusted equity remained deeply negative throughout, indicating a significant imbalance in asset and liability composition when goodwill is excluded.

Return on Equity (ROE)

The reported ROE was only provided for 2021, where it was extraordinarily high at 131.1%, likely due to the positive equity value in that year combined with net income. No other ROE values were reported, and adjusted ROE was not provided at all, limiting trend analysis for this important profitability metric.

In summary, the company exhibited volatile profitability with large swings in net income but ended the period with net income levels close to those observed at the start. The stockholders’ equity position showed persistent weakness with several years in deficit under both reported and adjusted methodologies, although adjusted equity improved noticeably from extreme negative levels. The limited ROE data restricts comprehensive return trend analysis. The data suggests financial performance has been uneven and equity structure remains a concern, particularly when accounting for goodwill impairments or exclusions.

The financial data over the examined periods reveals notable fluctuations and trends in net income, total assets, and returns on assets (ROA) for the company.

Net Income Performance

Reported net income attributable to the company shows variability, with a peak of 5,563 million US dollars recorded in the fiscal year ending January 28, 2022. This was followed by a sharp decline in the subsequent year to 2,442 million, then a gradual recovery to 4,592 million by January 31, 2025. Adjusted net income values align closely with the reported figures, suggesting limited impact from goodwill adjustments on net income reporting.

Total Assets

Reported total assets exhibited a downward trend over the time span. The highest level of 123,415 million US dollars occurred in January 2021, after which total assets consistently decreased to 79,746 million by January 2025. Adjusted total assets, which exclude goodwill, follow a parallel declining trajectory starting from 82,586 million in January 2021 down to 60,626 million in January 2025. This steady reduction in asset base indicates potential divestitures, asset sales, or amortization impacts affecting the company's asset holdings.

Return on Assets (ROA)

Reported ROA percentages demonstrate considerable volatility, with peaks seen in January 28, 2022 (6.00%) and January 31, 2025 (5.76%). The lowest point occurred in January 29, 2021 (2.63%). Adjusted ROA, which accounts for the exclusion of goodwill-related asset values, generally remains higher than the reported ROA across all periods. This suggests that goodwill adjustments inflate the asset base, thereby diluting the ROA metric. The adjusted ROA also shows similar fluctuation, with a peak of 7.62% in January 28, 2022 and a strong recovery to 7.57% in January 31, 2025, underscoring improved profitability relative to the asset base excluding goodwill.

Overall, the data indicates a phase of asset contraction alongside fluctuating profitability. The divergence between reported and adjusted metrics highlights the significance of goodwill in asset valuation and performance measurement. The company's recent recovery in net income and return on assets may signal operational improvements or restructuring efficiencies despite the declining asset scale.