Dell Technologies Inc. (NYSE:DELL)

Debt to Equity

Data is only available for the year ended January 29, 2021, where the ratio was recorded at 19.36. There is no information to ascertain trend or variation across other periods.

Debt to Equity (Including Operating Lease Liability)

This ratio was reported as 20.25 for the year ended January 29, 2021. No further data is available for other years, limiting trend analysis.

Debt to Capital

The debt to capital ratio exhibits fluctuation over the periods observed. Starting at 1.03 in January 31, 2020, it decreased to 0.95 in January 29, 2021, then increased to 1.07 in January 28, 2022, reaching a peak of 1.12 in February 3, 2023, before slightly declining to 1.10 and 1.06 in the most recent years. Overall, this reflects moderate volatility with a general upward movement until 2023 followed by a mild reduction.

Debt to Capital (Including Operating Lease Liability)

This ratio closely mirrors the debt to capital ratio excluding lease liabilities, maintaining values nearly identical throughout the observed periods, indicating that operating lease liabilities had minimal impact on the overall debt structure.

Debt to Assets

There is a noticeable downward trend in the debt to assets ratio over the periods. Starting at 0.44 in January 31, 2020, the ratio decreased steadily to 0.39 in 2021, 0.29 in 2022, then slightly increased to 0.33 in 2023, before marginally declining again in the last two years to 0.32 and 0.31. This indicates a gradual reduction in debt relative to asset base with minor fluctuations.

Debt to Assets (Including Operating Lease Liability)

The trend here resembles that of the debt to assets ratio without lease liabilities, but values are slightly higher each year. The ratio starts at 0.45 in 2020, decreases to 0.41 in 2021, then down to 0.30 in 2022. It rises to 0.34 in 2023 and then declines to 0.33 and 0.32 subsequently. This pattern suggests the effect of operating leases moderately adjusts the leverage assessment but follows the same general trend.

Financial Leverage

Information is only available for the year ended January 29, 2021, at 49.78 with no comparative data for other periods, hindering longitudinal analysis.

Interest Coverage

This ratio displays a significant improvement from 1.00 in 2020 to 2.54 in 2021, signaling better ability to meet interest expenses. The financial coverage ratio peaks at 4.84 in 2022, indicating strong earnings relative to interest obligations. It subsequently declines to 3.64 and 3.59 in the following two years but recovers somewhat to 4.62 in the latest period. Generally, the trend shows enhanced interest coverage over time with some volatility.

Fixed Charge Coverage

The fixed charge coverage ratio shows a similar upward trajectory beginning at 1.00 in 2020, more than doubling to 2.26 in 2021, and peaking at 4.16 in 2022. This is followed by declines to 3.14 and 3.17 in the succeeding years and a rebound to 3.99 most recently. The pattern indicates a strengthening ability to cover fixed charges with operating income, albeit with some fluctuations.

The financial data reveals distinct trends in the company's debt and equity positions over the indicated periods. A detailed analysis is as follows:

Total Debt

The total debt shows a significant decrease from US$52,056 million as of January 31, 2020, to US$24,567 million as of January 31, 2025. The most notable drop occurs between January 29, 2021 (US$47,984 million) and January 28, 2022 (US$26,954 million), indicating substantial debt reduction during this timeframe. After this, the total debt remains relatively stable with minor fluctuations.

Total Stockholders’ Equity (Deficit)

The equity position exhibits volatility and remains negative or marginally positive across the years. In January 31, 2020, there is a deficit of US$1,574 million. It then improves to a positive figure of US$2,479 million by January 29, 2021, before declining again into negative territory, reaching a deficit of US$3,122 million as of February 3, 2023. Slight recoveries are observed in the following years, with the deficit narrowing to US$1,482 million by January 31, 2025. Overall, this indicates persistent challenges in building a stable positive equity base.

Debt to Equity Ratio

Data is only available for January 29, 2021, showing an extremely high debt-to-equity ratio of 19.36. This unusually high ratio suggests a highly leveraged capital structure at that point in time, influenced by the magnitude of debt relative to the positive equity figure in that year. The absence of further data limits analysis of trends for this ratio.

In summary, the company has undertaken considerable efforts to reduce its debt load over the years, which may improve its financial flexibility. However, the stockholders’ equity fluctuates substantially, often showing deficits, highlighting ongoing concerns related to retained earnings or other equity components. The available leverage ratio confirms a historically high degree of financial leverage, although more data would be required to assess whether leverage trends have improved consistently over time.

Total debt (including operating lease liability)

The total debt exhibited a declining trend over the period analyzed. Starting from $53,848 million in early 2020, the debt decreased to $50,207 million in early 2021. A significant reduction occurred by early 2022, bringing the debt level down to $27,961 million. Although there was a slight increase to $30,478 million in early 2023, the debt resumed its decrease in subsequent years, reaching $25,325 million by early 2025. Overall, this reflects a considerable deleveraging effort over the five-year span.

Total stockholders’ equity (deficit)

Stockholders' equity has fluctuated between negative and positive values throughout the observed years, consistently showing a deficit position except for early 2021. It improved from a negative $1,574 million in early 2020 to a positive $2,479 million in early 2021, indicating a temporary strengthening of equity. However, this was followed by a return to negative equity of $1,685 million in early 2022 and further deterioration to $3,122 million deficit in early 2023. The deficit slightly improved thereafter, ending at $1,482 million negative by early 2025. This pattern suggests ongoing challenges in maintaining positive equity levels.

Debt to equity ratio (including operating lease liability)

The available data provides a ratio of 20.25 as of early 2021, indicating an extremely high level of leverage relative to stockholders' equity at that point. The absence of ratio data for other years limits the ability to assess leverage trends comprehensively, but given the negative equity figures in most years, the ratio likely remained elevated, reflecting high financial risk.

Total Debt

The total debt demonstrates a significant decrease over the observed periods, starting from $52,056 million in January 2020 to $24,567 million in January 2025. Despite a slight increase between January 2021 and February 2023, the overall trend is downward, indicating a consistent reduction in debt obligations over the years.

Total Capital

Total capital exhibits a similar downward pattern, declining from $50,482 million in January 2020 to $23,085 million in January 2025. This decrease is steady with minor fluctuations, suggesting a reduction in the company’s overall capital base during this time frame.

Debt to Capital Ratio

The debt to capital ratio remains above 1.0 for most periods, starting at 1.03 in January 2020, dipping to 0.95 in January 2021, and then rising again to peak at 1.12 in February 2023 before slightly decreasing to 1.06 in January 2025. This ratio indicates that debt consistently slightly exceeds total capital, reflecting a capital structure with a heavy reliance on debt financing. The fluctuations suggest some volatility but overall a stable tendency to maintain high leverage.

The financial data exhibits notable trends in the company's capital structure and debt levels over the analyzed periods.

Total Debt (including operating lease liability)

The total debt level demonstrates an overall downward trajectory from January 31, 2020, through January 31, 2025. Debt decreased significantly from $53,848 million in early 2020 to $25,325 million by early 2025. However, a moderate increase was observed between January 28, 2022 ($27,961 million) and February 3, 2023 ($30,478 million) before continuing its decline thereafter.

Total Capital (including operating lease liability)

Total capital also declined over the same period, starting at $52,274 million in early 2020 and decreasing to $23,843 million by early 2025. Similar to total debt, total capital dropped substantially during the first three years and showed minor fluctuations around 2023 before continuing the downward trend.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio fluctuates around the value of 1.0, indicating that debt is roughly equal to total capital throughout the period. Initially, the ratio decreases from 1.03 in early 2020 to 0.95 in early 2021, suggesting relatively less reliance on debt compared to capital at that time. Following that, the ratio rises to a peak of 1.11 in early 2023, indicating increased leverage, before slightly falling to 1.06 in early 2025.

Overall, the data reveals a significant reduction in absolute debt and capital values, with the company's capital structure maintaining a consistent balance between debt and total capital, as evidenced by the debt to capital ratio remaining close to 1 throughout the period. The temporary increase in debt to capital ratio around 2022–2023 suggests a period of increased leverage which later moderated. These changes may reflect strategic financial management decisions aimed at reducing liabilities while maintaining capital adequacy.

Debt Trends

The total debt shows a noticeable declining trend over the period examined. Starting from $52,056 million in early 2020, it decreases significantly to $24,567 million by early 2025. This reduction demonstrates a consistent effort to manage and reduce overall debt levels over the six-year span.

Asset Trends

Total assets also exhibit a downward trajectory from $118,861 million in 2020 to $79,746 million in 2025. The decrease in assets is less steep compared to the reduction in total debt, suggesting a structural contraction or divestment in asset holdings over the years.

Debt to Assets Ratio

The debt-to-assets ratio declines from 0.44 in 2020 to 0.31 in 2025, indicating that the proportion of debt relative to total assets has decreased. Despite some fluctuations, this ratio generally trends downwards, reflecting an improvement in leverage and potentially signaling a stronger balance sheet position.

Overall Financial Position

The combined changes in total debt, total assets, and the debt-to-assets ratio suggest a deliberate deleveraging strategy coupled with a decrease in asset base. The company appears to be prioritizing debt reduction, which may enhance solvency and financial stability in the long term, albeit accompanied by a contraction in asset size.

Total debt (including operating lease liability)

Over the observed periods, total debt demonstrated a significant decline. From a peak of 53,848 million USD in early 2020, debt gradually decreased to 25,325 million USD by early 2025. Notably, between 2020 and 2021, total debt saw a reduction of approximately 4,641 million USD, followed by a sharp drop to 27,961 million USD in 2022. Subsequent years showed smaller reductions, indicating measured debt management and deleveraging efforts.

Total assets

Total assets exhibited a downward trend across the years. Starting at 118,861 million USD in 2020, the asset base decreased to 79,746 million USD by 2025. The decline was continuous each year, with the most notable decreases occurring between 2021 and 2022, and maintaining a consistent reduction thereafter. This shrinkage in asset size may reflect asset sales, restructuring, or operational contractions.

Debt to assets (including operating lease liability)

The debt to assets ratio decreased from 0.45 in 2020 to 0.32 in 2025, indicating improved leverage position. The ratio fell substantially between 2020 and 2022, corresponding with reductions in both debt and assets. While the ratio experienced a slight increase in 2023, it resumed its downward trajectory thereafter. Overall, the declining ratio suggests enhanced financial stability and less reliance on debt financing relative to the asset base.

Overall analysis

The data reveals a trend of deliberate deleveraging and asset reduction over the six-year period. Both total debt and total assets were reduced significantly, with debt decreasing at a greater rate relative to assets, contributing to the improved debt to assets ratio. This indicates a strategic initiative focused on reducing financial risk and strengthening the balance sheet. The consistent declines suggest ongoing efforts to optimize capital structure and possibly streamline operations.

Total assets

The total assets demonstrate a consistent downward trend over the observed periods. Starting at 118,861 million US dollars in January 2020, the assets increased slightly by early 2021 to 123,415 million US dollars. However, from that point forward, there is a steady decline each year reaching 79,746 million US dollars by January 2025. This represents a significant reduction in total assets, indicating either asset disposals, depreciation, or other factors diminishing the asset base over the years.

Total stockholders’ equity (deficit)

The stockholders' equity figures fluctuate notably over the same timeframe, starting with a deficit of -1,574 million US dollars in January 2020, improving to a positive value of 2,479 million US dollars in January 2021. Following this, equity reverts again to negative territory, with values of -1,685 million in January 2022, further declining to -3,122 million in early 2023. Thereafter, there is a gradual improvement, with deficits decreasing to -2,404 million in 2024 and -1,482 million by early 2025. This indicates volatility in equity values, with periods of recovery followed by renewed losses, suggesting challenges in achieving consistent profitability or managing liabilities.

Financial leverage

Financial leverage data is only available for January 2021 and shows a very high ratio of 49.78, implying substantial reliance on debt financing relative to equity at that point. The absence of subsequent data prevents a trend analysis, but this high leverage level in 2021 can be correlated with the equity position shifting from negative to positive during the same period, reflecting possible adjustments in capital structure or financing strategies.

Earnings before interest and tax (EBIT)

The EBIT values demonstrate a general upward trend from 2020 through the 2025 forecast, with some fluctuations. Starting at $2,671 million in 2020, EBIT increased significantly to $6,059 million in 2021 and further to $7,465 million in 2022, marking strong growth in operating profitability. There is a notable decline to $4,447 million in 2023, suggesting a temporary reduction in operating performance. After this dip, EBIT rebounds to $5,388 million in 2024 and further to $6,442 million in 2025, indicating recovery and renewed strength in earnings from core operations.

Interest Expense

Interest expense shows a consistent downward trend from 2020 through 2023, decreasing from $2,675 million in 2020 to $1,222 million in 2023. This decline suggests a reduction in debt levels or more favorable borrowing terms. However, interest expense slightly increases to $1,501 million in 2024 before decreasing marginally again to $1,394 million in 2025. Overall, the reduction over the early years contributes positively to financial cost management.

Interest Coverage Ratio

The interest coverage ratio, which indicates the ability to cover interest expenses with EBIT, improves markedly from 1.0 in 2020 to a peak of 4.84 in 2022, reflecting enhanced earnings relative to interest obligations. This ratio declines somewhat to 3.64 in 2023 and remains relatively stable at approximately 3.59 in 2024, signaling a temporary weakening of coverage capability aligned with the EBIT drop in 2023. By 2025, the ratio increases again to 4.62, aligning with the EBIT recovery and a stable interest expense, illustrating improved financial resilience.

Earnings before fixed charges and tax

The earnings before fixed charges and tax showed a significant increase from 3,181 million US dollars in early 2020 to a peak of 7,800 million in early 2022. Subsequent years saw a decline to 4,730 million in early 2023, followed by a gradual recovery to 6,735 million by early 2025. This indicates a volatile performance with a strong recovery trend towards the end of the observed period.

Fixed charges

Fixed charges decreased consistently from 3,185 million US dollars in 2020 to a low of 1,505 million in 2023. After this trough, there was a minor upward adjustment, reaching 1,687 million in 2025. The initial decline in fixed charges suggests a possible reduction in interest or lease obligations, contributing positively to financial flexibility.

Fixed charge coverage ratio

The coverage ratio improved considerably from 1.00 in 2020 to a peak of 4.16 in 2022, indicating enhanced ability to cover fixed charges with earnings. Although the ratio decreased to 3.14 in 2023, it stabilized and improved again to 3.99 by 2025. The overall trend reflects strengthening financial health and improved capacity to service fixed obligations over time.