Dell Technologies Inc. (NYSE:DELL)

The analysis of the financial ratios over the examined periods reveals several key trends in operational efficiency, liquidity, leverage, and profitability.

Asset Turnover

Both reported and adjusted total asset turnover ratios demonstrate an overall upward trend, indicating improved efficiency in using assets to generate sales. Reported turnover increased from 0.78 in early 2020 to 1.20 by early 2025, with minor fluctuations. Adjusted ratios, slightly higher throughout, followed a similar pattern, peaking at 1.19 in 2023 before a slight dip and recovery.

Current Ratio

The reported current ratio exhibits modest improvement from 0.70 in 2020 to a peak of 0.82 in 2023, then slightly declining but remaining below 1. The adjusted current ratio, however, is consistently higher than reported, staying above 0.98 in 2020 and reaching around 1.10 by early 2025. This suggests a relatively stable and adequate level of short-term liquidity when adjustments are applied.

Leverage Ratios

Reported debt to equity and financial leverage show incomplete data, but adjusted ratios present a clear trend. Adjusted debt to equity decreases steadily from 2.01 in 2020 to about 1.07 by 2025, indicating reduced reliance on debt relative to equity. Similarly, adjusted debt to capital falls from 0.67 to approximately 0.52 over the period, suggesting an improvement in the capital structure with less debt proportionally. Adjusted financial leverage also declines, implying lowered risk from excessive borrowing.

Profitability Ratios

The reported net profit margin fluctuates notably, peaking at 5.5% in 2022, dropping to 2.39% in 2023, and recovering to 4.81% by 2025. Adjusted net profit margin, however, shows a downward trajectory from 6.61% in 2021 to 1% in 2025, signaling pressure on profitability when adjustments are considered. Adjusted return on equity (ROE) follows a similar pattern, increasing initially to 25.16% in 2022, then declining steadily to 3.9% in 2025, reflecting decreasing efficiency in generating returns for shareholders. Adjusted return on assets (ROA) peaks at 7.09% in 2022 but falls thereafter to 1.18% by 2025, indicating diminishing asset profitability.

Overall, the data indicates improvements in asset utilization and liquidity management over the analyzed years. At the same time, leverage has been managed more conservatively, with reductions in debt ratios and financial leverage. However, profitability indicators reveal volatility and a downward trend, especially in adjusted measures, suggesting challenges in sustaining profit margins and returns in more recent periods.

The analysis of the financial metrics over the periods from January 31, 2020, to January 31, 2025, reveals several noteworthy trends in revenue, assets, and efficiency ratios.

Net Revenue

Net revenue gradually increased from 92,154 million US dollars in early 2020 to a peak of 102,301 million in 2023. However, in the subsequent years, revenue declined to 88,425 million in 2024 before partially rebounding to 95,567 million in 2025. This pattern indicates fluctuations with an overall upward but volatile trend.

Total Assets

Total assets showed a declining trend throughout the observed periods. Beginning at 118,861 million US dollars in 2020, assets decreased steadily each year, reaching 79,746 million by 2025. This consistent reduction in total assets may reflect strategic asset sales, depreciation, or other balance sheet adjustments.

Reported Total Asset Turnover

The reported total asset turnover ratio, which measures how efficiently the company uses its assets to generate revenue, initially declined slightly from 0.78 in 2020 to 0.76 in 2021. Subsequently, it improved notably, rising to 1.14 in 2023, then experienced a minor dip to 1.08 in 2024, and increased again to 1.20 in 2025. This suggests an improvement in asset utilization efficiency over the time frame, despite some variability.

Adjusted Net Revenue

The adjusted net revenue follows a similar trajectory to the net revenue, increasing from 95,944 million in 2020 to a peak of 105,014 million in 2023. Thereafter, it decreased to 87,284 million in 2024 and rose to 92,387 million in 2025. The adjusted figures generally show higher revenue amounts than the reported net revenue but share the same cyclical pattern.

Adjusted Total Assets

Adjusted total assets similarly decreased from 114,017 million in 2020 to 78,203 million in 2025. This steady decline aligns with the trend observed in reported total assets, indicating a consistent reduction in asset base after adjustments.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio improved from 0.84 in 2020 to a high of 1.19 in 2023, followed by a reduction to 1.08 in 2024 and a subsequent rise to 1.18 in 2025. This trend mirrors the reported turnover pattern and further supports the view of increasing operational efficiency in asset use over time.

In summary, the data illustrates a company experiencing fluctuating but generally increasing revenue, while simultaneously managing a declining asset base. The increasing asset turnover ratios, both reported and adjusted, suggest effective use of assets in revenue generation, pointing to enhanced operational efficiency despite the shrinking asset pool.

The financial data indicates several noteworthy trends in the company’s liquidity and working capital management over the examined periods.

Current Assets

Current assets increased steadily from 36,868 million US$ in January 2020 to a peak of 45,033 million US$ in January 2022. After this peak, there was a decline to 36,229 million US$ by January 2025. This suggests a contraction in liquid and short-term assets in the later years after a period of growth.

Current Liabilities

Current liabilities rose from 52,456 million US$ in January 2020, reaching a maximum of 56,219 million US$ in January 2022, then decreased consistently to 46,527 million US$ by January 2025. This reflects a reduction in short-term obligations following an initial increase.

Reported Current Ratio

The reported current ratio, calculated as current assets divided by current liabilities, showed a gradual improvement from 0.7 in 2020 to 0.82 in 2023, before declining to 0.78 in 2025. Throughout this period, the ratio remained below 1, indicating that current liabilities consistently exceeded current assets on a reported basis.

Adjusted Current Assets and Liabilities

Adjusted current assets followed a similar trend to reported assets, increasing until 2022 and then declining, with values close to but slightly higher than reported current assets at each date. Adjusted current liabilities, however, decreased markedly after 2022, from a high of 41,958 million US$ down to 32,854 million US$ by 2025, which is significantly lower than the reported current liabilities.

Adjusted Current Ratio

The adjusted current ratio showed a notable improvement over the period, increasing from 0.98 in 2020 to 1.17 in 2023 and stabilizing slightly above 1 at 1.10 in 2025. This indicates that when liabilities are adjusted, the company maintained a relatively stable and sufficient level of current assets to cover current obligations.

Overall, the data suggests the company experienced growth in both current assets and liabilities until early 2022, after which both declined, with liabilities decreasing at a faster pace than assets. The reported current ratio remained below 1, signaling potential liquidity concerns on an unadjusted basis. However, the adjusted ratios point to a healthier liquidity position, with the company maintaining the ability to meet short-term liabilities. This discrepancy highlights the importance of considering adjusted figures for a more accurate assessment of liquidity.

The financial data reveals several notable trends in the company's debt and equity positions over the examined periods.

Total debt

The total debt demonstrates a clear declining trend, decreasing from $52,056 million in early 2020 to $24,567 million by early 2025. This represents a substantial reduction in the company’s overall debt burden over the six-year period.

Total stockholders’ equity (deficit)

The reported stockholders’ equity exhibits significant volatility, including negative values in four of the six periods. Starting with a deficit of $1,574 million in 2020, equity increased to a positive $2,479 million in 2021, then reverted to persistent negative figures through 2025, though with some improvement from the low point of -$3,122 million in 2023 to -$1,482 million in 2025. This suggests ongoing challenges with net asset valuation under the reported framework.

Reported debt to equity ratio

Available data for the reported debt to equity ratio only emerges for one period, 2021, showing an elevated ratio of 19.36. The absence of data in other years precludes a full trend analysis but indicates potential volatility or issues in the reported equity figures impacting ratio calculation.

Adjusted total debt

The adjusted total debt follows a similar downward trajectory as the total debt, decreasing from $53,848 million in 2020 to $25,325 million in 2025, corroborating the trend of debt reduction under adjusted accounting assumptions.

Adjusted total stockholders’ equity (deficit)

Adjusted equity values are consistently positive across all periods, starting at $26,803 million in 2020, peaking at $33,641 million in 2021, and then gradually declining to $23,697 million by 2025. Although there is a decrease from the peak, the equity remains substantial, suggesting improved net asset position when adjusted measures are applied.

Adjusted debt to equity ratio

The adjusted debt to equity ratio decreases from 2.01 in 2020 to a low of 1.02 in 2024, before slightly increasing to 1.07 in 2025. This trend reflects a gradual improvement in capital structure with a more balanced relationship between debt and equity, indicating a strengthened financial position over time.

In summary, the company displays a consistent reduction in total and adjusted debt levels. The reported equity position shows volatility and periods of deficit, while the adjusted equity remains positive and relatively strong, though slightly declining in recent years. The adjusted debt to equity ratio illustrates improved leverage management, moving towards a more optimal and sustainable capital structure by the end of the period under review.

Total Debt

The total debt decreased significantly from 52,056 million USD in 2020 to 24,567 million USD in 2025. The most notable drop occurred between 2021 and 2022, with a reduction from 47,984 million USD to 26,954 million USD. Subsequent years show a more gradual decline, reflecting ongoing debt reduction efforts.

Total Capital

Total capital exhibited a similar downward trend, starting at 50,482 million USD in 2020 and decreasing steadily to 23,085 million USD by 2025. The decline was marked between 2021 and 2022, where capital roughly halved from 50,463 million USD to 25,269 million USD, followed by smaller reductions in later years.

Reported Debt to Capital Ratio

The reported debt to capital ratio fluctuated near or above 1.0 throughout the period, indicating that reported debt was equal to or exceeded reported capital consistently. The ratio decreased from 1.03 in 2020 to 0.95 in 2021, but then increased to above 1.0 in subsequent years, peaking at 1.12 in 2023 before a slight decline to 1.06 in 2025. This suggests that despite reductions in both debt and capital, leverage remained high.

Adjusted Total Debt

Adjusted total debt followed a decreasing trend consistent with total debt, declining from 53,848 million USD in 2020 to 25,325 million USD in 2025. Similar to total debt, the largest reduction occurred between 2021 and 2022, with a gradual reduction thereafter. This confirms the sustained effort to lower indebtedness when considering adjusted figures.

Adjusted Total Capital

Adjusted total capital showed a pronounced decrease from 80,651 million USD in 2020 to 49,022 million USD in 2025. Unlike total capital, the adjusted capital values are higher across all periods, reflecting additional adjustments. The reduction trend matches the overall pattern of shrinking capital base seen over the years, particularly between 2021 and 2022.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio indicated a materially different leverage perspective compared to the reported ratio. It declined steadily from 0.67 in 2020 to 0.52 in 2025, reflecting a reduction in adjusted leverage. The decline was most substantial between 2021 and 2022, with the ratio dropping from 0.60 to 0.52, followed by a relatively stable period. This suggests that when adjustments are considered, the company has improved its leverage position over time.

The analysis of the financial data reveals notable trends in the company's asset base, equity position, and leverage ratios over the covered periods.

Total Assets

Total assets show a consistent decline from US$118,861 million in early 2020 to US$79,746 million by early 2025, representing a reduction of approximately 33%. This downward trend indicates a contraction in the asset base over the five-year span.

Total Stockholders’ Equity (Deficit)

The reported stockholders’ equity figures fluctuate between positive and negative values, starting with a deficit of US$1,574 million in 2020, peaking to a surplus of US$2,479 million in 2021, then returning to negative territory in subsequent years, though with a decreasing magnitude of deficit from -US$3,122 million in 2023 to -US$1,482 million in 2025. This pattern indicates volatility and challenges in maintaining a stable positive equity position under reported measures.

Reported Financial Leverage

The reported financial leverage ratio is only available for 2021 and is notably high at 49.78, suggesting extreme leveraging at that time. However, the absence of data for other years limits comprehensive analysis from the reported ratio alone.

Adjusted Total Assets

Adjusted total assets mirror the downward trend observed in reported total assets, decreasing from US$114,017 million in early 2020 to US$78,203 million in early 2025, a reduction of about 31%. This decline signals the asset base contraction also holds true when adjusted for accounting considerations.

Adjusted Total Stockholders’ Equity (Deficit)

Adjusted equity values remain positive throughout the analyzed periods, starting at US$26,803 million in 2020 and fluctuating modestly to US$23,697 million in 2025. Though there is a general decline, the adjusted equity position exhibits greater stability compared to the reported figures.

Adjusted Financial Leverage

The adjusted financial leverage ratio exhibits a steady improvement over time, dropping from 4.25 in 2020 to a low of 3.08 in 2024, before slightly rising to 3.3 in 2025. This downward trend suggests a strengthening equity base relative to debt or liabilities, implying improved financial structure and potentially reduced risk.

In summary, the company experiences a clear reduction in its asset base over the analyzed period. While reported equity figures show volatility and periods of deficit, the adjusted equity measures suggest a more stable and positive equity position. The adjusted leverage ratios reflect a gradual improvement in financial leverage, indicating enhanced balance sheet strength despite asset contractions.

The analysis of the financial data over the given periods reveals distinct trends in profitability and revenue performance dynamics.

Net Income Attributable to Dell Technologies Inc.

The net income shows a fluctuating pattern. Starting at 4,616 million USD in 2020, it declined to 3,250 million USD in 2021, then peaked at 5,563 million USD in 2022. Subsequent years observed a drop to 2,442 million USD in 2023, followed by growth to 3,211 million USD in 2024 and a notable increase to 4,592 million USD in 2025.

Net Revenue

Net revenue exhibited a growth trend from 92,154 million USD in 2020 to a peak of 102,301 million USD in 2023. However, there was a marked decline to 88,425 million USD in 2024, before partially recovering to 95,567 million USD in 2025.

Reported Net Profit Margin

The reported net profit margin varied, beginning at 5.01% in 2020, dropping sharply to 3.45% in 2021, improving to 5.5% in 2022, and then declining again to its lowest point of 2.39% in 2023. It subsequently rose to 3.63% in 2024 and to 4.81% in 2025, showing some recovery but still not consistently stable.

Adjusted Net Income

Adjusted net income showed substantial volatility. It started at 2,769 million USD in 2020, increased significantly to 6,431 million USD in 2021 and slightly more to 6,540 million USD in 2022. After this peak, it decreased sharply to 4,155 million USD in 2023 and further dropped to 2,060 million USD in 2024, reaching a low of 925 million USD in 2025.

Adjusted Net Revenue

Adjusted net revenue demonstrated a growth trend until 2023, rising from 95,944 million USD in 2020 to 105,014 million USD in 2023. It then declined sharply to 87,284 million USD in 2024, with a slight recovery to 92,387 million USD in 2025.

Adjusted Net Profit Margin

The adjusted net profit margin peaked in 2021 at 6.61%, just below the 2020 figure of 2.89%, and remained relatively high at 6.34% in 2022. There was a marked decline thereafter to 3.96% in 2023, and a continual decrease to 2.36% in 2024, down to a notably low 1% in 2025, indicating a weakening profitability on an adjusted basis.

Overall, the data reflect strong revenue growth that peaked around 2023 before declining. Profitability measures, both reported and adjusted, exhibit considerable variability with signs of instability and downward pressure in recent years. The adjusted profit margins show a particularly pronounced decline in the last two years, which may signal challenges in controlling costs or other operational factors affecting earnings quality.

The financial data reveals several distinct patterns across the evaluated periods, highlighting both volatility and shifts in profitability and equity positions.

Net Income Attributable to Dell Technologies Inc.

The net income figures fluctuate significantly over the years. Starting at 4,616 million US dollars in early 2020, it decreased to 3,250 million in 2021, then rose sharply to 5,563 million in 2022. This was followed by a steep decline to 2,442 million in 2023, before recovering to 3,211 million in 2024 and 4,592 million in 2025. Overall, the net income pattern shows high variability with alternating periods of increase and decrease.

Total Stockholders' Equity (Deficit)

The reported total equity reveals a challenging trend, with values remaining in negative territory for most years, indicating a deficit. In 2020, equity was negative 1,574 million, improved to a positive 2,479 million in 2021, but then reverted to negative figures for subsequent years: -1,685 million in 2022, -3,122 million in 2023, -2,404 million in 2024, and -1,482 million in 2025. This oscillation reflects persistent equity deficits with only a temporary positive balance.

Reported Return on Equity (ROE)

Reported ROE data is only available for the year ending in January 2021, where it peaked at 131.1%. The absence of data for other periods limits the assessment of trends using this metric.

Adjusted Net Income

Adjusted net income shows an initial increase from 2,769 million in 2020 to a peak of 6,540 million in 2022, followed by a steady decline over the next three periods, falling to 4,155 million in 2023, 2,060 million in 2024, and reaching 925 million in 2025. This downward trend after 2022 indicates decreasing profitability on an adjusted basis in recent years.

Adjusted Total Stockholders' Equity (Deficit)

The adjusted equity position remains positive throughout the period, beginning at 26,803 million in 2020, peaking at 33,641 million in 2021, and then generally declining to reach 23,697 million in 2025. Despite the decline, the company maintains a substantial adjusted equity base relative to the deficits reported in the unadjusted figures.

Adjusted Return on Equity (ROE)

The adjusted ROE presents a clear downward trajectory, starting at 10.33% in 2020 and rising to a high of 25.16% in 2022. From that peak, there is a steep decline in returns to 15.47% in 2023, then further decreasing to 7.85% in 2024 and 3.9% in 2025. This pattern signals diminishing efficiency in generating returns on adjusted equity over the most recent years.

In summary, the data shows high volatility in net income with notable peaks and troughs. The discrepancy between reported and adjusted equity results suggests the presence of significant accounting adjustments impacting reported equity positions. Adjusted figures provide a more positive equity perspective, albeit with a declining trend over time. A peak in profitability and returns was observed around 2021-2022, followed by consistent decreases, pointing to reduced profitability and returns on equity more recently.

The financial data over the periods indicates several notable trends in profitability, asset base, and associated returns for the company.

Net Income Attributable to Dell Technologies Inc.

The net income showed variability, starting at 4,616 million USD in early 2020, declining to 3,250 million USD in 2021, then rebounding to 5,563 million USD in 2022. This was followed by a sharp decrease to 2,442 million USD in 2023, a moderate recovery to 3,211 million USD in 2024, and an increase back to 4,592 million USD in 2025. The pattern reveals a fluctuating profit performance with significant peaks and troughs throughout the period.

Total Assets

The total assets exhibited a consistent downward trend from 118,861 million USD in 2020 to 79,746 million USD in 2025. This steady reduction in asset base suggests possible divestitures, asset sales, or depreciation outpacing asset acquisitions.

Reported Return on Assets (ROA)

Reported ROA followed a non-linear trend, starting at 3.88% in 2020, decreasing to 2.63% in 2021, then increasing to 6.00% in 2022. It dropped again to 2.73% in 2023, rose to 3.91% in 2024, and further to 5.76% in 2025. The fluctuating ROA parallels the volatility observed in net income, indicating variable efficiency in asset utilization during these years.

Adjusted Net Income

Adjusted net income showed an irregular trend, beginning at 2,769 million USD in 2020, sharply increasing to over 6,400 million USD in 2021 and 2022, followed by a steep decline to 4,155 million USD in 2023, then a significant fall to 2,060 million USD in 2024, and ultimately reaching a low of 925 million USD in 2025. The downward movement after 2022 suggests challenges in maintaining adjusted profitability in the later years.

Adjusted Total Assets

The adjusted total assets mirrored the pattern of the total assets, decreasing steadily from 114,017 million USD in 2020 to 78,203 million USD in 2025, reflecting a consistent contraction of the asset base on an adjusted basis as well.

Adjusted Return on Assets (ROA)

Adjusted ROA initially improved from 2.43% in 2020 to a peak of 7.09% in 2022, then declined progressively to 4.7% in 2023, 2.55% in 2024, and reached a low of 1.18% in 2025. This indicates a worsening efficiency or profitability relative to assets when considering adjusted figures, especially notable after 2022.

Overall, the data reveals a shrinking asset base accompanied by fluctuating profitability and return ratios. While certain years exhibit strong financial performance and asset utilization, the later periods reflect declining profitability, particularly under adjusted metrics, suggesting the company faced increased challenges in sustaining its financial efficiency and earnings.