Dell Technologies Inc. (NYSE:DELL)

Return on Assets (ROA)

The ROA exhibited notable fluctuations over the observed periods. Initially, it declined from 3.71% in May 2020 to a low of 1.73% in July 2020, followed by a gradual recovery and steady increase peaking around 6.5% in April 2022. Subsequently, a marked decrease to approximately 2.15% occurred by October 2022. From this point, ROA demonstrated a consistent upward trend, climbing from 2.73% in February 2023 to nearly 6.0% by October 2025. This pattern suggests periods of volatility followed by sustained improvement in asset profitability over the longer term.

Financial Leverage

Financial leverage data were partially available, revealing a significant reduction over a limited timeframe. Starting at an extremely high ratio of 134.71 in October 2020, leverage metrics decreased sharply to 49.78 in January 2021, 34.92 in April 2021, and further down to 25.43 by July 2021. Data beyond this period were missing, but the existing information indicates a substantial deleveraging effort or improvement in capital structure within that interval.

Return on Equity (ROE)

The ROE showed very high values initially, with 275.31% recorded in October 2020, followed by a decline to 131.1% in January 2021, then further down to 114.54% in April 2021, and 78.28% in July 2021. By October 2021, ROE was still considerably elevated at 75.81%. No values were reported after this period. The trend signifies an exceptionally high return on equity early on, with a notable decreasing trajectory, possibly reflecting reduced use of leverage or changes in net income levels relative to equity.

Net Profit Margin

The net profit margin displayed variability over the observed periods. Starting at 4.85% in May 2020, there was an initial decline, reaching a low around 1.74% by October 2022. Following this trough, the margin gradually recovered, showing a consistent upward trend that reached approximately 5.01% by October 2025. This indicates a period of initial compression in profitability relative to sales, followed by steady improvement towards the end of the timeline.

Asset Turnover

The asset turnover ratio demonstrated moderate fluctuations with a notable increase beginning in early 2022. Initially fluctuating around 0.75 to 0.79, it rose sharply to exceed 1.0 starting January 2022, peaking at around 1.24 in October 2022. Subsequent quarters maintained this higher level, showing ratios generally above 1.1, suggesting improved efficiency in using assets to generate revenue over the later periods.

Financial Leverage

The financial leverage ratio presented limited data, available only between October 2020 and January 2022. Within this range, a pronounced reduction was observed—from an exceptionally high 134.71 down to 15.15—indicating a significant decrease in reliance on debt relative to equity. The absence of data in later periods limits analysis beyond this timeframe.

Return on Equity (ROE)

ROE figures, available only from October 2020 through January 2022, showed very high values initially, with a peak of 275.31%. This figure substantially declined over the subsequent quarters to 75.81%. While still elevated, this trend suggests a normalization or reduction in equity returns during the observed period. The missing data after January 2022 precludes further trend analysis.

The analysis of the quarterly financial metrics reveals varying trends over the observed periods, specifically in net profit margin, asset turnover, and return on assets (ROA).

Net Profit Margin

The net profit margin demonstrates notable fluctuations across the quarters. Starting at 4.85% in May 2020, it declined to a low of 1.74% in October 2022 before showing a gradual upward trend reaching 5.01% by October 2025. This indicates episodes of margin contraction followed by recovery and steady improvement, suggesting effective cost management or revenue enhancement measures implemented over time.

Asset Turnover

Asset turnover exhibits an overall increasing trend from approximately 0.77 in early 2020 to about 1.19 in late 2025. A significant uptick is observable starting in January 2022, where the ratio jumps from 0.73 to values above 1.0 and remains high. This improvement implies more efficient use of assets in generating sales, possibly reflecting better operational efficiency or asset base optimization during this timeframe.

Return on Assets (ROA)

The return on assets closely mirrors the trends seen in net profit margin and asset turnover. After initial volatility and a dip to 1.73% in the second quarter of 2020, ROA consistently grows, peaking near 6.5% in April 2022. Despite some variability thereafter, the metric maintains elevated levels above 4%, climbing gradually towards 5.96% in late 2025. This suggests an overall strengthened ability to generate returns from the company’s asset base.

Collectively, these trends illustrate a period of initial instability followed by strong improvement and stabilization in profitability and asset efficiency. The synchronization of increased asset turnover and rising net profit margin contributes to a robust enhancement in return on assets, highlighting effective management efforts to bolster financial performance over the medium to long term.