Stock Analysis on Net

Dell Technologies Inc. (NYSE:DELL)

$24.99

Common-Size Income Statement

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Dell Technologies Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Products
Services
Net revenue
Products
Services
Cost of net revenue
Gross margin
Selling, general, and administrative
Research and development
Operating expenses
Operating income
Investment income, primarily interest
Gain (loss) on investments, net
Interest expense
Foreign exchange
Gain on disposition of businesses and assets
Legal settlement, net
Other
Interest and other, net
Income (loss) before income taxes
Income tax (expense) benefit
Net income from continuing operations
Income from discontinued operations, net of income taxes
Net income
Net (income) loss attributable to non-controlling interests
Net income attributable to Dell Technologies Inc.

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).


Revenue Composition
The proportion of net revenue derived from products showed some fluctuation, starting at 75.87% in 2020, decreasing slightly to 74.2% in 2021, then increasing to 78.89% in 2022, followed by a decline to 72.78% in 2024 before a partial recovery to 74.73% in 2025. Conversely, services revenue demonstrated an inverse trend, beginning at 24.13%, rising to 27.22% in 2024, and settling at 25.27% in 2025, indicating a relative shift between product and service contributions over the years.
Cost of Net Revenue and Gross Margin
Cost of net revenue as a percentage of total revenue increased significantly from -68.6% in 2020 to a peak of -78.37% in 2022, indicating rising costs associated with revenue generation. This contributed to a sharp drop in gross margin from 31.4% in 2020 to 21.63% in 2022. Subsequently, gross margin showed a moderate recovery, reaching 23.6% in 2024 but slightly declining again to 22.24% in 2025. The higher cost ratios for products compared to services reflect differential cost structures between these segments.
Operating Expenses
Operating expenses, comprising Selling, General, and Administrative (SG&A) and Research and Development (R&D), declined steadily as a percentage of net revenue. SG&A reduced notably from -23.13% in 2020 to -12.51% in 2025, indicating improved operational efficiencies or cost management. R&D expenses also decreased from -5.42% to around -3.2%, reflecting a substantial reduction in relative research investments over the period.
Profitability Measures
Operating income increased consistently, starting at 2.85% of net revenue in 2020 and reaching 6.53% in 2025. This upward trend was supported by reduced operating expenses despite pressures on gross margin. Net income attributable to Dell Technologies Inc. showed variability, peaking at 5.5% in 2022, dipping to 2.39% in 2023, and then recovering to 4.81% by 2025. The fluctuations in net income mirror the operational performance and other financial items affecting the bottom line.
Other Financial Items
Interest expense as a percentage of net revenue decreased over time from -2.9% in 2020 to -1.46% in 2025, which likely contributed favorably to net income. Investment income and gains on investments exhibited minor fluctuations without a clear trend. One-time items such as gain on disposition of businesses in 2022 (3.92%) and a legal settlement loss in 2023 (-0.87%) indicate occasional impacts outside normal operations. The foreign exchange impact remained minor and slightly negative throughout.
Income Taxes and Net Income
Income tax expense shifted from a positive 6% in 2020 (likely a tax benefit) to negative values from 2021 onward, stabilizing around -0.78% and improving slightly to -0.49% in 2025. This pattern suggests changes in tax provisioning or rates over the years. Net income from continuing operations experienced rise and fall cycles consistent with operating and non-operating income, with a notable dip in 2023 followed by recovery. Overall, net income reflects stable profitability amid varying economic conditions and internal expense management efforts.