Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Dell Technologies Inc., liquidity ratios
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).
- Current Ratio
- The current ratio shows a generally stable trend over the analyzed periods, fluctuating slightly within a range from 0.7 to 0.82. It increased from 0.7 in January 2020 to a peak of 0.82 in February 2023, indicating a modest improvement in short-term liquidity, before declining somewhat to 0.74 in February 2024 and slightly recovering to 0.78 in January 2025.
- Quick Ratio
- The quick ratio exhibits more variability compared to the current ratio, with values ranging between 0.41 and 0.59. It increased from 0.51 in January 2020 to its highest point of 0.59 in January 2021, then declined steadily to 0.41 by January 2025. This downward trend suggests a decreasing proportion of liquid assets relative to current liabilities over time.
- Cash Ratio
- The cash ratio demonstrates a clear declining pattern throughout the observed periods. Starting from 0.18 in January 2020, it peaked at 0.26 in January 2021, followed by a consistent decrease to just 0.08 by January 2025. This indicates a reduction in the most liquid assets available to cover current liabilities, highlighting a potential tightening in cash reserves.
Current Ratio
Dell Technologies Inc., current ratio calculation, comparison to benchmarks
| Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 36,229) | 35,947) | 42,351) | 45,033) | 43,567) | 36,868) | |
| Current liabilities | 46,527) | 48,494) | 51,654) | 56,219) | 54,132) | 52,456) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 0.78 | 0.74 | 0.82 | 0.80 | 0.80 | 0.70 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Apple Inc. | — | 0.87 | 0.99 | 0.88 | 1.07 | 1.36 | |
| Arista Networks Inc. | — | 4.36 | 4.39 | 4.29 | 4.34 | 4.99 | |
| Cisco Systems Inc. | — | 0.91 | 1.38 | 1.43 | 1.49 | 1.72 | |
| Super Micro Computer Inc. | — | 3.81 | 2.31 | 1.91 | 1.93 | 2.25 | |
| Current Ratio, Sector | |||||||
| Technology Hardware & Equipment | — | 0.91 | 1.04 | 0.95 | 1.08 | 1.24 | |
| Current Ratio, Industry | |||||||
| Information Technology | — | 1.24 | 1.41 | 1.37 | 1.55 | 1.71 | |
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).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 36,229 ÷ 46,527 = 0.78
2 Click competitor name to see calculations.
- Current Assets
- The current assets showed an initial upward trend from US$36,868 million in January 2020 to a peak of US$45,033 million in January 2022. Following this peak, there was a decline to US$35,947 million by February 2024, with a slight recovery to US$36,229 million by January 2025. Overall, current assets fluctuated but ended close to the initial level after five years.
- Current Liabilities
- Current liabilities increased steadily from US$52,456 million in January 2020 to US$56,219 million in January 2022. After this peak, liabilities showed a consistent decline reaching US$46,527 million by January 2025. This indicates an improvement in short-term obligations management over the recent years.
- Current Ratio
- The current ratio improved from 0.7 in January 2020 to 0.82 in February 2023, reflecting an improving liquidity position. Subsequently, it decreased to 0.74 in February 2024 before slightly recovering to 0.78 in January 2025. Despite fluctuations, the ratio remained below 1 throughout the period, suggesting that current liabilities consistently exceeded current assets, which may indicate liquidity risks.
Quick Ratio
Dell Technologies Inc., quick ratio calculation, comparison to benchmarks
| Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 3,633) | 7,366) | 8,607) | 9,477) | 14,201) | 9,302) | |
| Accounts receivable, net of allowance | 10,298) | 9,343) | 12,482) | 12,912) | 12,788) | 12,484) | |
| Due from related party, net | —) | —) | 378) | 131) | —) | —) | |
| Short-term financing receivables, net of allowance | 5,304) | 4,643) | 5,281) | 5,089) | 5,155) | 4,895) | |
| Total quick assets | 19,235) | 21,352) | 26,748) | 27,609) | 32,144) | 26,681) | |
| Current liabilities | 46,527) | 48,494) | 51,654) | 56,219) | 54,132) | 52,456) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.41 | 0.44 | 0.52 | 0.49 | 0.59 | 0.51 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Apple Inc. | — | 0.75 | 0.84 | 0.71 | 0.91 | 1.22 | |
| Arista Networks Inc. | — | 3.46 | 3.16 | 3.05 | 3.54 | 4.25 | |
| Cisco Systems Inc. | — | 0.69 | 1.13 | 1.16 | 1.32 | 1.58 | |
| Super Micro Computer Inc. | — | 1.88 | 1.16 | 0.75 | 0.72 | 0.87 | |
| Quick Ratio, Sector | |||||||
| Technology Hardware & Equipment | — | 0.72 | 0.83 | 0.72 | 0.89 | 1.08 | |
| Quick Ratio, Industry | |||||||
| Information Technology | — | 0.96 | 1.12 | 1.09 | 1.30 | 1.47 | |
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).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 19,235 ÷ 46,527 = 0.41
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets exhibit fluctuations over the observed periods. Initially, there is an increase from 26,681 million US dollars in early 2020 to 32,144 million in early 2021. Following this peak, the value consistently declines, reaching 19,235 million by early 2025. This downward trend since 2021 indicates a reduction in highly liquid assets over the more recent years.
- Current Liabilities
- Current liabilities show moderate volatility but a general downward movement after a peak. Beginning at 52,456 million in early 2020, liabilities increase slightly to 56,219 million by early 2022. Subsequent years reveal a steady decrease, dropping to 46,527 million by early 2025. This suggests improved management of short-term obligations or reduction in payable items over the last three years.
- Quick Ratio
- The quick ratio, which measures short-term liquidity by comparing quick assets to current liabilities, follows a similar pattern to total quick assets. It rises from 0.51 in 2020 to a high of 0.59 in 2021, then declines gradually to 0.41 by 2025. This ratio falling below 1 indicates a continued liquidity constraint, with a decreasing capacity to cover current liabilities through quick assets over time.
- Overall Analysis
- The data reflect a liquidity profile characterized by an initial improvement in quick asset availability and liquidity position until 2021, followed by diminishing quick assets and deteriorating quick ratio through 2025. Although current liabilities have decreased since 2022, the reduction in liquid assets outpaces this, contributing to a declining quick ratio. This trend may signal increasing liquidity risk or a shift in the company's asset composition towards less liquid items.
Cash Ratio
Dell Technologies Inc., cash ratio calculation, comparison to benchmarks
| Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 3,633) | 7,366) | 8,607) | 9,477) | 14,201) | 9,302) | |
| Total cash assets | 3,633) | 7,366) | 8,607) | 9,477) | 14,201) | 9,302) | |
| Current liabilities | 46,527) | 48,494) | 51,654) | 56,219) | 54,132) | 52,456) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.08 | 0.15 | 0.17 | 0.17 | 0.26 | 0.18 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Apple Inc. | — | 0.37 | 0.42 | 0.31 | 0.50 | 0.86 | |
| Arista Networks Inc. | — | 3.04 | 2.62 | 2.34 | 3.07 | 3.74 | |
| Cisco Systems Inc. | — | 0.44 | 0.84 | 0.75 | 0.93 | 1.16 | |
| Super Micro Computer Inc. | — | 0.71 | 0.32 | 0.18 | 0.24 | 0.30 | |
| Cash Ratio, Sector | |||||||
| Technology Hardware & Equipment | — | 0.37 | 0.44 | 0.34 | 0.50 | 0.72 | |
| Cash Ratio, Industry | |||||||
| Information Technology | — | 0.57 | 0.71 | 0.67 | 0.89 | 1.06 | |
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).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 3,633 ÷ 46,527 = 0.08
2 Click competitor name to see calculations.
- Total cash assets
- The total cash assets showed an initial increase from $9,302 million in 2020 to a peak of $14,201 million in 2021. Following this peak, there is a consistent downward trend, with cash assets decreasing to $9,477 million in 2022, then further declining each year to reach $3,633 million by 2025. This suggests a significant reduction in liquid assets over the observed period after 2021.
- Current liabilities
- Current liabilities increased gradually from $52,456 million in 2020 to a peak of $56,219 million in 2022. After 2022, current liabilities demonstrated a steady decline each year, reaching $46,527 million by 2025. This indicates a reduction in short-term obligations after 2022.
- Cash ratio
- The cash ratio followed a pattern largely consistent with the trends observed in cash assets. It improved from 0.18 in 2020 to 0.26 in 2021, indicating a stronger liquidity position in terms of cash assets relative to current liabilities during that year. Post-2021, the cash ratio declined steadily, reaching 0.08 in 2025, which reflects a weakening ability to cover short-term liabilities with cash assets.