Dell Technologies Inc. (NYSE:DELL)

Current Ratio Trend

The current ratio exhibited moderate fluctuations over the observed periods, starting at 0.77 in May 2019 and experiencing a slight decline to a low of 0.70 in January 2020. It then improved gradually, reaching above 0.80 between October 2020 and January 2022. After this peak, the ratio declined again, hitting a low of 0.72 in November 2024. Most recently, the ratio increased notably to 0.85 by May 2025. Overall, the current ratio shows a pattern of short-term dips followed by recoveries, indicating some variability in short-term liquidity but a general maintenance of levels below 1.0, which suggests limited margin for covering short-term liabilities with current assets.

Quick Ratio Trend

The quick ratio followed a broadly downward trajectory, starting at 0.55 in May 2019 and progressively decreasing with some fluctuations to a lower range around 0.40 to 0.45 from mid-2023 through May 2025. Notable dips occurred between April 2022 and November 2024, where the quick ratio remained consistently below 0.50, reaching lows near 0.40. A slight recovery is noted towards the end of the period but the ratio remains below earlier levels. This decline could indicate decreasing availability of highly liquid assets relative to current liabilities, suggesting reduced immediate financial flexibility.

Cash Ratio Trend

The cash ratio showed a declining trend overall, starting at 0.21 in May 2019 and decreasing gradually with intermittent minor rebounds. Peaks were observed around October 2021 at 0.32 and January 2021 at 0.26. However, after April 2022, the cash ratio generally remained below 0.17 and dropped further to lows near 0.08 by early 2025. Although there is a slight increase to 0.15 by May 2025, the overall trend suggests a diminishing level of cash and cash equivalents relative to current liabilities, which may reflect tighter immediate liquidity conditions or strategic changes in cash management.

Liquidity Analysis Summary

The combined analysis of the current, quick, and cash ratios indicates that the company has experienced some volatility in liquidity over the examined timeframe. While the current ratio maintained moderate stability with occasional improvements, both the quick and cash ratios generally declined, pointing to a reduction in the company's holdings of liquid assets that can quickly cover liabilities. The decline in these more stringent liquidity measures alongside a current ratio typically below 1.0 suggests the firm might rely more heavily on inventory or other less liquid current assets to meet short-term obligations. This pattern warrants monitoring to ensure that liquidity remains sufficient to support operational needs without compromising financial stability.

Current Assets

The current assets showed moderate fluctuations throughout the analyzed periods. Beginning at approximately 33.7 billion USD in early May 2019, the figures exhibited a general upward trend, peaking notably around October 2021 at about 57.2 billion USD. This peak was followed by a decline and subsequent variability, with values mostly stabilizing in the range of 35 to 43 billion USD in the latest periods ending May 2025. This pattern suggests periods of significant asset accumulation followed by rebalancing or drawdown phases.

Current Liabilities

Current liabilities consistently remained at high levels relative to current assets. The values started near 43.5 billion USD and generally increased over time, reaching a peak exceeding 69.7 billion USD in October 2021. After this high point, liabilities decreased somewhat but remained volatile between approximately 46.5 and 56.2 billion USD in the more recent quarters. This upward trend with occasional decreases indicates ongoing obligations management with occasional adjustments.

Current Ratio

The current ratio, representing the ability to cover current liabilities with current assets, fluctuated mostly below 1.0 throughout the observed timeframe. Initially around 0.77, the ratio declined to a low near 0.7 in early 2020, reflecting relatively tighter liquidity conditions. Subsequent periods showed improvement, with a high of about 0.85 recorded in May 2025. The ratio generally oscillated between 0.7 and 0.82, indicating that the company typically maintained current assets at levels below or just around its current liabilities, suggesting moderate liquidity pressure but some improvement toward the end of the period.

Overall Analysis

Overall, the data indicates that the company experiences significant variations in both current assets and liabilities, with a notable peak in both measures around late 2021. Current liabilities consistently exceed current assets, reflected by a current ratio below 1 throughout most of the periods, which implies that short-term liabilities surpass short-term assets and could point to liquidity risk factors. Nevertheless, gradual improvement in the current ratio by mid-2024 and 2025 suggests some enhancement in short-term financial stability. Monitoring these liquidity metrics remains crucial for assessing the company’s capability to meet short-term obligations.

The quick ratio of the company demonstrates a generally declining trend over the examined periods, indicating a gradual reduction in the liquidity buffer when measured against current liabilities. Initially, the quick ratio stood at 0.55 in May 2019 and exhibited minor fluctuations around this level until early 2021 where it peaked at 0.6 in October 2021. However, from that point onward, a gradual decrease is observable, reaching a low of 0.40 in the mid-2024 quarters before a slight recovery to 0.45 by May 2025.

Total quick assets show variability throughout the periods with some notable peaks and troughs. A prominent peak is observed in October 2021, where total quick assets rose sharply to 41,553 million US dollars, significantly higher compared to other periods. Following this peak, a downward trend occurs, with total quick assets generally decreasing and showing a level of volatility, ending at 22,866 million US dollars in May 2025, which is lower compared to the early periods.

Current liabilities have generally increased over time, starting at 43,479 million US dollars in May 2019 and fluctuating with an upward bias, peaking at 69,702 million US dollars in October 2021. After this peak, liabilities decrease somewhat but remain elevated relative to the initial periods, ending at 50,422 million US dollars in May 2025. This rising trend in liabilities, combined with volatile quick assets, contributes to the fluctuating and overall declining quick ratio.

Liquidity Position

The decreasing quick ratio suggests rising challenges in covering short-term liabilities with the most liquid assets, reflecting a tightening liquidity position over the latter part of the period analyzed.

Asset and Liability Trends

Despite occasional spikes in quick assets, the overall downward trajectory combined with generally increasing current liabilities signals potential strains on working capital management. The marked peak in liabilities and quick assets around late 2021 indicates a period of significant financial activity or restructuring.

Financial Stability Considerations

The trends point to the importance of monitoring liquidity closely, as the quick ratio falling below 0.5 for extended periods suggests limited immediate asset coverage against current obligations, which could impact operational flexibility and financial stability.

The examined financial data indicates variable liquidity conditions over the reported periods. Total cash assets experienced notable fluctuations, beginning at $9.04 billion and reaching a peak of $22.41 billion in the period ending October 29, 2021. Subsequently, a generally downward trend is observed, with occasional minor recoveries, culminating in $7.7 billion by May 2, 2025.

Current liabilities exhibit a generally increasing pattern initially, rising from approximately $43.48 billion to a peak of $69.7 billion in late 2021. Following this peak, a decline trend emerges, lowering to about $46.53 billion by the last date available. This suggests a reduction in short-term obligations in the most recent periods compared to the peak.

The cash ratio, which measures the ability to cover current liabilities with cash assets alone, reflects changes consistent with those seen in cash and liabilities. The ratio started near 0.21 and improved slightly to 0.32 at the highest point in October 2021, indicating stronger short-term liquidity at that time. Afterward, the ratio declined steadily, reaching a low of 0.08 and slightly recovering to 0.15 in May 2025. This decline signals a weakening cash coverage relative to current liabilities in later periods.

Overall, the data suggests that while the company had periods of increased cash reserves and improved liquidity around late 2021, the subsequent trend points to diminishing cash assets against fluctuating current liabilities, resulting in decreased immediate liquidity based on the cash ratio. The patterns suggest attention to managing cash flow and current obligations may be necessary to maintain financial flexibility.