Dell Technologies Inc. (NYSE:DELL)

The financial ratios presented demonstrate varying trends over the observed period. Several ratios exhibit adjustments that significantly alter the reported values, suggesting the impact of specific accounting treatments or non-recurring items. Generally, the adjusted ratios present a more conservative, and in some cases, a more stable financial picture than the reported figures.

Asset Turnover

Reported total asset turnover increased from 0.76 to 1.14 between 2021 and 2023, then decreased slightly to 1.08 in 2024, with projections of 1.20 and 1.12 for 2025 and 2026 respectively. The adjusted total asset turnover follows a similar pattern, beginning at 0.82, peaking at 1.19, and then showing a slight decline, with projections of 1.18 and 1.15. The adjusted figures are consistently higher than the reported figures, indicating that adjustments increase the efficiency with which assets are used to generate sales.

Liquidity

The reported current ratio remains relatively low and fluctuates, starting at 0.80, decreasing to 0.74 in 2024, and increasing to 0.91 by 2026. In contrast, the adjusted current ratio is substantially higher, beginning at 1.16 and remaining above 1.08 throughout the period, reaching 1.16 by 2026. This suggests that adjustments significantly improve the company’s short-term liquidity position.

Leverage

Reported debt to equity is only available for 2021 at 19.36, while the adjusted debt to equity ratio demonstrates a decreasing trend from 1.49 in 2021 to 1.02 in 2024, before increasing to 1.38 in 2026. The reported debt to capital ratio shows a steady increase from 0.95 to 1.12 between 2021 and 2023, followed by stabilization and a slight increase to 1.09 by 2026. The adjusted debt to capital ratio remains consistently lower, ranging from 0.51 to 0.60, indicating a lower proportion of debt financing when adjustments are considered. Adjusted financial leverage decreases from 3.51 to 3.08 between 2021 and 2024, then increases to 4.26 by 2026, while reported financial leverage is only available for 2021 at 49.78.

Profitability

Reported net profit margin fluctuates considerably, from 3.45% in 2021 to 5.50% in 2022, then decreasing to 2.39% in 2023, increasing to 3.63% in 2024, and projecting to 5.23% in 2026. The adjusted net profit margin shows a different pattern, starting at 6.61%, decreasing to 2.36% in 2024, and then increasing sharply to 6.11% in 2026. The adjusted figures are generally higher than the reported figures in the earlier years, but lower in later years. Reported return on equity (ROE) is only available for 2021 at 131.10%, while adjusted ROE decreases from 19.12% in 2021 to 3.90% in 2024, then increases significantly to 29.90% in 2026. Reported return on assets (ROA) increases from 2.63% in 2021 to 6.00% in 2022, then decreases to 2.73% in 2023, increasing to 5.86% by 2026. Adjusted ROA follows a similar trend, but with lower values, decreasing to 1.18% in 2024 before increasing to 7.02% in 2026.

In summary, the adjustments made to these financial ratios consistently impact the reported values, often resulting in a more conservative assessment of the company’s financial performance and position. The most significant changes are observed in the current ratio, debt to equity, and net profit margin, where adjustments lead to substantial differences between the reported and adjusted figures. The projections for 2025 and 2026 suggest continued fluctuations in these ratios.

The adjusted total asset turnover ratio for the observed period demonstrates a generally increasing trend, with some fluctuation. Initial values indicate improvement, followed by stabilization and a final increase towards the end of the period. A closer examination reveals specific patterns and potential areas of interest.

Overall Trend

The adjusted total asset turnover ratio began at 0.82 in January 2021 and generally increased to 1.15 by January 2026. While not consistently upward, the ratio exhibits a clear tendency towards higher values, suggesting improved efficiency in asset utilization over time. There is a slight dip in the ratio between February 2023 and February 2024, but it recovers in subsequent periods.

Year-over-Year Changes

From January 2021 to January 2022, the adjusted total asset turnover ratio increased from 0.82 to 1.12, representing a substantial gain. A further increase was observed between January 2022 and February 2023, moving from 1.12 to 1.19. The ratio remained relatively stable between February 2023 and February 2024, at 1.19 and 1.08 respectively. A subsequent rise to 1.18 in January 2025 and 1.15 in January 2026 concludes the period.

Comparison with Reported Turnover

The adjusted total asset turnover ratio consistently exceeds the reported total asset turnover ratio across all observed periods. The difference between the two ratios varies, but the adjusted ratio consistently presents a higher value. This suggests that the adjustments made to net revenue and total assets result in a more favorable assessment of asset utilization efficiency.

Revenue and Asset Relationship

Adjusted net revenue generally increased over the period, with a notable decrease between February 2023 and February 2024. Adjusted total assets exhibited a decreasing trend from January 2021 to January 2025, before increasing in January 2026. The interplay between these two factors influences the asset turnover ratio; the increase in the ratio is not solely attributable to revenue growth, as asset levels also play a significant role.

In summary, the adjusted total asset turnover ratio indicates improving efficiency in asset utilization, despite some short-term fluctuations. The consistent difference between reported and adjusted ratios highlights the impact of the adjustments made to revenue and asset figures. The observed trends suggest a positive trajectory in the company’s ability to generate revenue from its asset base.

The adjusted current ratio exhibits a generally stable pattern over the observed period, with fluctuations occurring between 1.08 and 1.17. Initial values indicate a ratio of 1.16 in January 2021, followed by a slight decrease to 1.08 in January 2022. A subsequent increase to 1.17 was noted in February 2023, before declining modestly to 1.09 in February 2024 and remaining relatively consistent at 1.10 in January 2025. The most recent observation, in January 2026, shows a further increase to 1.16.

Adjusted Current Ratio Trend

The adjusted current ratio demonstrates a generally healthy liquidity position throughout the period. While there are minor variations, the ratio consistently remains above 1.0, suggesting the entity possesses sufficient adjusted current assets to cover its adjusted current liabilities. The slight dip in 2022 and 2024 is followed by recovery, indicating potential short-term fluctuations that do not fundamentally alter the overall liquidity profile.

Comparing the reported and adjusted current ratios, the adjustments consistently result in a higher ratio. This suggests that the adjustments to current assets and liabilities are increasing the perceived short-term liquidity position. The magnitude of the adjustment varies year to year, but the effect is consistently positive. The difference between the reported and adjusted ratios warrants further investigation to understand the nature of these adjustments and their impact on the true liquidity of the entity.

Adjusted Assets and Liabilities

Adjusted current assets generally follow a similar trend to reported current assets, with a notable increase in the most recent period (January 2026). Adjusted current liabilities, however, show a more pronounced decrease from 2022 to 2025, contributing to the improved adjusted current ratio. The increase in adjusted current liabilities in January 2026 partially offsets the increase in adjusted current assets, but the overall ratio still improves.

The increase in both adjusted current assets and liabilities in January 2026 suggests a potential expansion of operations or a change in working capital management. The continued positive adjusted current ratio, even with increased liabilities, indicates the entity is managing its liquidity effectively despite this growth.

The adjusted debt to equity ratio demonstrates a generally stable trend over the observed period, with some fluctuation. Initially, the ratio begins at 1.49 in January 2021 and decreases to 1.02 by February 2024 before increasing to 1.38 in January 2026. This suggests a moderate shift in the company’s capital structure over the six-year period.

Adjusted Debt to Equity Ratio - Overall Trend

The ratio exhibits a decreasing trend from 2021 to 2024, indicating a relative improvement in the equity position compared to debt. However, the ratio increases in the final two years, suggesting a renewed reliance on debt financing or a decrease in equity.

Adjusted Debt to Equity Ratio - Year-over-Year Changes

From January 2021 to January 2022, the adjusted debt to equity ratio decreased from 1.49 to 1.08, a substantial reduction. The subsequent decrease from 1.08 to 1.02 between January 2022 and February 2024 was more gradual. The most significant year-over-year increase occurred between January 2025 and January 2026, rising from 1.07 to 1.38.

Underlying Components

Adjusted total debt shows a general increase over the period, moving from US$50,207 million in January 2021 to US$32,230 million in January 2026. Adjusted total stockholders’ equity demonstrates a more consistent, albeit declining, trend, starting at US$33,641 million and ending at US$23,385 million. The interplay between these two components drives the observed fluctuations in the adjusted debt to equity ratio.

The relatively small changes in the ratio between 2022 and 2024 suggest a period of capital structure stability. The increase in the ratio in the final two years warrants further investigation to determine the underlying causes and potential implications for the company’s financial health.

Reported vs. Adjusted Debt to Equity

The reported debt to equity ratio is only available for January 2021, at 19.36. This is significantly higher than the adjusted ratio of 1.49 for the same period, indicating substantial adjustments were made to either debt or equity calculations. The nature of these adjustments is not apparent from the information presented.

The adjusted debt to capital ratio demonstrates a generally stable trend over the observed period, with fluctuations occurring between 2021 and the projected 2026 figures. Initial values indicate a decrease followed by a slight increase, ultimately settling within a narrow range.

Adjusted Debt to Capital Ratio - Overall Trend

The ratio begins at 0.60 in 2021 and declines to a low of 0.51 in 2023. It then exhibits a modest increase, reaching 0.52 in 2024 and remaining at that level in 2025, before rising to 0.58 in the projected 2026.

Adjusted Debt to Capital Ratio - Initial Decline (2021-2023)

From 2021 to 2023, the adjusted debt to capital ratio experienced a decrease from 0.60 to 0.51. This decline coincides with increases in adjusted total capital that outpaced increases in adjusted total debt during this period. The adjusted total debt increased from US$50,207 million to US$30,478 million, while adjusted total capital rose from US$83,848 million to US$57,332 million.

Adjusted Debt to Capital Ratio - Stabilization and Increase (2023-2026)

Following the decline, the ratio stabilized between 2023 and 2025, remaining at approximately 0.52. The projected value for 2026 shows an increase to 0.58. This projected increase is associated with a larger increase in adjusted total debt (US$32,230 million) compared to adjusted total capital (US$55,615 million).

Underlying Components - Adjusted Debt

Adjusted total debt increased from US$50,207 million in 2021 to US$30,478 million in 2023, then rose to US$32,230 million in the projected 2026. This indicates a period of debt reduction followed by a projected increase.

Underlying Components - Adjusted Capital

Adjusted total capital decreased from US$83,848 million in 2021 to US$49,022 million in 2025, before increasing to US$55,615 million in the projected 2026. This suggests a period of capital reduction followed by a projected increase.

The observed fluctuations in the adjusted debt to capital ratio are influenced by the concurrent changes in both adjusted total debt and adjusted total capital. The projected increase in the ratio for 2026 warrants further investigation to understand the drivers behind the anticipated changes in the capital structure.

An examination of the financial information reveals trends in adjusted financial leverage over a six-year period. Total assets decreased from 2021 to 2024, before increasing significantly in the projected years of 2025 and 2026. Stockholders’ equity remained negative throughout the period, though the magnitude of the deficit lessened from 2021 to 2024, before stabilizing and increasing slightly in 2025 and 2026. The adjusted financial leverage ratio demonstrates fluctuations, generally decreasing before rising again in the later years.

Adjusted Financial Leverage – Overall Trend

The adjusted financial leverage ratio began at 3.51 in 2021 and increased slightly to 3.55 in 2022. A downward trend was then observed, with the ratio decreasing to 3.29 in 2023 and further to 3.08 in 2024. The ratio increased to 3.30 in 2025, and then rose more substantially to 4.26 in 2026. This indicates a growing reliance on debt financing relative to adjusted equity in the projected year of 2026.

Relationship between Adjusted Assets and Equity

Adjusted total assets decreased consistently from 2021 through 2024, mirroring the trend in reported total assets. The projected increase in adjusted total assets in 2025 and 2026 suggests a potential shift in asset allocation or acquisition strategy. Adjusted total stockholders’ equity exhibited a more stable pattern, fluctuating between approximately US$23.4 billion and US$33.6 billion. The consistent negative equity position suggests ongoing challenges in retaining earnings or raising capital through equity offerings.

Comparison to Reported Leverage

Reported financial leverage was available only for 2021, at a value of 49.78. This is significantly higher than the adjusted financial leverage of 3.51 for the same period, indicating that adjustments to assets and equity substantially alter the leverage picture. The absence of reported leverage figures for subsequent years limits comparative analysis.

The increasing adjusted financial leverage in 2026, coupled with persistently negative equity, warrants further investigation. The projected asset growth should be examined in conjunction with the funding sources to assess the sustainability of the capital structure.

The adjusted net profit margin exhibited considerable fluctuation over the observed period. Initial values were strong, followed by a decline, and a subsequent recovery towards the end of the analyzed timeframe.

Overall Trend

From January 29, 2021, to January 31, 2025, the adjusted net profit margin generally decreased. Starting at 6.61%, it experienced a consistent decline, reaching a low of 1.00% in 2025. However, a significant increase was observed between January 31, 2025, and January 30, 2026, with the margin rising to 6.11%.

Initial Period (2021-2022)

The adjusted net profit margin remained relatively stable and high between 2021 and 2022, registering 6.61% and 6.34% respectively. This suggests a period of consistent profitability on adjusted earnings.

Decline (2022-2025)

A noticeable downward trend commenced in 2023, with the adjusted net profit margin decreasing to 3.96%. This decline accelerated in 2024, falling to 2.36%, and reached its lowest point in 2025 at 1.00%. This period indicates increasing pressure on profitability, potentially due to rising costs or decreased pricing power.

Recovery (2025-2026)

The final period demonstrates a substantial recovery in the adjusted net profit margin, increasing to 6.11% in 2026. This suggests successful implementation of cost-cutting measures, improved operational efficiency, or a favorable shift in market conditions. The recovery nearly returns the margin to its initial levels.

Relationship to Revenue

Adjusted net revenue generally increased over the period, except for a decrease between 2023 and 2024. The decline in adjusted net profit margin between 2022 and 2025 occurred despite generally increasing adjusted net revenue, indicating that revenue growth alone was insufficient to maintain profitability. The substantial margin improvement in 2026 coincided with a significant increase in adjusted net revenue, suggesting a synergistic effect.

In summary, the adjusted net profit margin experienced a period of stability followed by a significant decline, and then a strong recovery. The fluctuations suggest sensitivity to underlying economic factors or internal operational changes.

The adjusted return on equity (ROE) exhibits considerable fluctuation over the observed period. Net income attributable to Dell Technologies Inc. demonstrates an initial increase from 2021 to 2022, followed by a decline in 2023 and a partial recovery in 2024, with further increases projected for 2025 and 2026. Conversely, total stockholders’ equity remains negative throughout the period, though the magnitude of the deficit lessens from 2022 to 2025 before increasing slightly in 2026. These movements significantly impact the calculated adjusted ROE.

Adjusted ROE Trend

The adjusted ROE begins at 19.12% in 2021, rising to a peak of 25.16% in 2022. A subsequent decline is observed, with the adjusted ROE falling to 15.47% in 2023 and further to 7.85% in 2024. The trend continues downward, reaching a low of 3.90% in 2025, before a substantial increase to 29.90% is projected for 2026. This volatility suggests sensitivity to changes in both adjusted net income and adjusted stockholders’ equity.

Net Income and Adjusted Net Income Comparison

Adjusted net income consistently exceeds net income attributable to Dell Technologies Inc. across all reported years. The difference between the two metrics suggests the presence of significant adjustments being made to reported earnings. The largest divergence occurs in 2021, while the smallest is observed in 2022. The trend in adjusted net income mirrors that of net income, with a peak in 2022, a decline in 2023 and 2024, a dip in 2025, and a projected increase in 2026.

Stockholders’ Equity (Deficit) Analysis

Total stockholders’ equity is in a deficit position from 2022 onwards. The deficit decreases in magnitude from 2022 to 2025, indicating some improvement in the equity position, but then increases slightly in 2026. Adjusted total stockholders’ equity remains positive throughout the period, and exhibits a relatively stable trend, fluctuating between approximately US$23,385 million and US$33,641 million. The substantial difference between reported and adjusted equity suggests significant non-recurring items or accounting adjustments are impacting the reported equity value.

The projected increase in adjusted ROE for 2026 is largely driven by the anticipated rise in adjusted net income, despite a slight increase in the adjusted equity deficit. The overall trend indicates a company navigating a period of fluctuating profitability and a consistently negative reported equity position, mitigated by adjustments to both net income and equity.

The adjusted return on assets (ROA) exhibited considerable fluctuation over the observed period. Initial values were strong, followed by a decline, and then a substantial recovery towards the end of the forecast. A detailed examination of the components and the resulting ratio reveals key trends.

Adjusted ROA Trend

The adjusted ROA began at 5.45% in January 2021, increasing to a peak of 7.09% in January 2022. A subsequent decline was observed, falling to 4.70% in February 2023 and further to 2.55% in February 2024. The lowest point was reached in January 2025 at 1.18%, before a significant rebound to 7.02% in January 2026.

Adjusted Net Income

Adjusted net income generally tracked the adjusted ROA trend, initially increasing from US$6,431 million to US$6,540 million, then decreasing to US$4,155 million and US$2,060 million. A sharp drop occurred in January 2025 to US$925 million, mirroring the lowest adjusted ROA. The final period showed a strong recovery, reaching US$6,991 million.

Adjusted Total Assets

Adjusted total assets demonstrated a decreasing trend from US$118,091 million in January 2021 to US$78,203 million in January 2025. This decrease in asset base likely contributed to the lower adjusted ROA in the intervening years. However, assets increased substantially to US$99,625 million in January 2026, coinciding with the recovery in adjusted ROA.

The interplay between adjusted net income and adjusted total assets significantly influenced the adjusted ROA. The decline in adjusted ROA from 2022 to 2025 appears to be driven by a combination of decreasing adjusted net income and a shrinking asset base. The substantial increase in adjusted ROA in January 2026 is attributable to a significant recovery in adjusted net income coupled with an increase in adjusted total assets. The volatility suggests sensitivity to changes in both profitability and asset management.

Comparison to Reported ROA

The adjusted ROA consistently differed from the reported ROA throughout the period. The adjustments made to net income and total assets resulted in a different profitability picture. The magnitude of the difference varied, but the adjusted ROA generally presented a more volatile profile than the reported ROA.