Common-Size Income Statement
Quarterly Data
Dell Technologies Inc., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2025-10-31), 10-Q (reporting date: 2025-08-01), 10-Q (reporting date: 2025-05-02), 10-K (reporting date: 2025-01-31), 10-Q (reporting date: 2024-11-01), 10-Q (reporting date: 2024-08-02), 10-Q (reporting date: 2024-05-03), 10-K (reporting date: 2024-02-02), 10-Q (reporting date: 2023-11-03), 10-Q (reporting date: 2023-08-04), 10-Q (reporting date: 2023-05-05), 10-K (reporting date: 2023-02-03), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-Q (reporting date: 2022-04-29), 10-K (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30), 10-Q (reporting date: 2021-04-30), 10-K (reporting date: 2021-01-29), 10-Q (reporting date: 2020-10-30), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-05-01), 10-K (reporting date: 2020-01-31), 10-Q (reporting date: 2019-11-01), 10-Q (reporting date: 2019-08-02), 10-Q (reporting date: 2019-05-03).
- Revenue Composition Trends
- The percentage of net revenue derived from products fluctuated, initially around 76-77%, dipping near 72-73% in mid-2023, then rising back above 75% toward late 2025. Services revenue showed an inverse pattern, ranging mostly between 20% and 28%. Notably, services contribution increased sharply around early 2023, reaching up to 28%, before declining again by late 2025. These movements suggest a shifting balance between product sales and services over time.
- Cost of Net Revenue and Gross Margin
- Cost of net revenue steadily increased as a proportion of net revenue, rising from about 69% in early 2019 to over 79% by late 2025. This trend was driven by rising costs in both products and services segments, with product costs alone increasing from nearly 60% to over 67% of net revenue. Gross margin consequently compressed dramatically from around 31% down to approximately 20% or below in recent periods, indicating a tightening profitability from core operations.
- Operating Expenses
- Selling, general, and administrative expenses showed considerable improvement, decreasing from over 23% to below 13% of net revenue by late 2025. Research and development expenses also dropped from around 5.4% to under 3% across the periods. Overall operating expenses thereby reduced substantially, dropping from near 29% to around 13%, reflecting effective cost control efforts.
- Operating Income and Profitability
- Operating income as a percentage of net revenue improved from a low single-digit range near 2-3% up to over 9% by early 2025. Despite margin pressures from rising costs, the company managed to enhance operating profitability through expense reductions. Net income margins fluctuated significantly but generally showed recovery from lows near 1% to peaks above 6%, signifying improved bottom-line results though with notable variability.
- Interest, Tax, and Net Income Dynamics
- Interest and other net impacts were volatile, occasionally positive but mostly negative, usually ranging around -1% to -3% except for an anomaly with a substantial positive figure in late 2021. Income tax expense fluctuated with occasional benefits and expenses, contributing to variability in net income. Income before taxes correlated well with operating income trends, showing gains over time despite the variable tax environment.
- Continuing vs. Discontinued Operations
- Net income from continuing operations largely mirrored overall net income trends but with less volatility. Discontinued operations contributed minor amounts for a limited timeframe around 2021, having only transient effects on total profitability. The main earnings driver remained continuing operations.
- Non-Controlling Interests
- Net income attributable to non-controlling interests showed negligible impact overall, generally close to zero, indicating that the majority of earnings were attributable to the parent entity.
- Overall Insights
- The data reveals a company facing margin pressure from rising cost of revenue, particularly in the product segment. However, through significant operating expense reductions, profitability improved from earlier lows. The fluctuating revenue mix between products and services suggests adaptive business strategies or market shifts. Despite challenges in gross margin, operating income and net income showed resilience, supported by disciplined expense management and controlled tax and interest effects.