Dell Technologies Inc. (NYSE:DELL)

Debt to equity

The debt to equity ratio shows a significant decline over the observed periods from January 29, 2021, to January 28, 2022. Initially, the ratio was extremely high at 56.47, which rapidly dropped to 19.36, then further to 13.39, 9.04, and finally reached 5.36. This indicates a considerable reduction in the reliance on debt relative to shareholder equity during this timeframe. No data is available before or after this period, suggesting either a change in reporting or missing information.

Debt to capital

The debt to capital ratio initially demonstrated a gradual decline from 1.14 in May 3, 2019, to 0.84 in October 29, 2021. This suggests an improvement in capital structure with a decreasing proportion of debt within total capital. However, from October 29, 2021, onward, there is a reversal in this trend; the ratio increases again, fluctuating around values slightly above 1.10. This increasing pattern continues through August 1, 2025, indicating a rise in debt as a part of the capital structure in the later periods.

Debt to assets

The debt to assets ratio exhibits a consistent downward trend from 0.49 in May 3, 2019, decreasing steadily to around 0.29 by January 28, 2022. Post this period, the ratio stabilizes with small fluctuations in the low 0.30s range up to August 1, 2025. This trend suggests a gradual reduction in the company's leverage relative to its assets initially, followed by a stabilization phase with moderate leverage exposure.

Financial leverage

Financial leverage data is available only for the period from January 29, 2021, to January 28, 2022. During this time, the ratio decreases dramatically from 134.71 to 15.15, indicating a sharp reduction in the use of leverage. The absence of data outside this period limits further analysis, but the decline within this timeframe aligns with the trend observed in the declining debt to equity ratio.

The analysis of the financial data over the periods from May 2019 through August 2025 reveals several notable trends in the company's capital structure and solvency metrics.

Total Debt

Total debt started at approximately $53.5 billion in May 2019, showing moderate fluctuations throughout the observed quarters. A decline trend is evident from early 2021, where debt decreased from around $47.9 billion in January 2021 to approximately $26.0 billion by May 2024. Subsequently, debt stabilized around $28.6 billion towards the latter periods through August 2025. This general reduction indicates active debt management or repayment strategies aimed at lowering leverage.

Total Stockholders’ Equity (Deficit)

The equity position began with a deficit of around -$6.5 billion in May 2019. Over the subsequent quarters, equity improved significantly, reaching positive territory with a peak near $9.0 billion in October 2021. However, after this peak, equity reverted back to negative levels and remained in deficit territory throughout the remaining periods, varying between approximately -$1.5 billion and -$3.5 billion. This reversion suggests challenges in sustaining positive equity, possibly linked to operating results, share repurchases, or other equity-related transactions.

Debt to Equity Ratio

This ratio is only reported from January 2021 through May 2022. During this time, it dramatically decreased from an extremely high level of 56.47 in January 2021 to 5.36 by May 2022. This steep decline indicates a strengthening equity base relative to debt or a reduction in debt, contributing to improved financial leverage metrics. Comparatively, such a high starting ratio exemplifies significant leverage risk initially present.

In summary, the overall financial trend reflects a concerted effort to reduce total debt substantially, particularly from 2021 onwards. While the equity line shows a transitory period of strong positive balance in late 2021, the sustained return to negative equity in subsequent quarters may raise concerns regarding shareholder value and financial stability. The period with available debt to equity ratios demonstrates a marked improvement in leverage position, but the absence of newer data limits forward-looking leverage assessments.

Total Debt

Over the examined periods, total debt exhibits significant fluctuation with an initial high level followed by a general downward trend through mid-2021. Initially, total debt decreased moderately from 53,524 million US dollars in May 2019 to approximately 26,954 million by January 2022. Subsequently, the figures show stabilization with minor variations until early 2025, followed by a slight uptick towards the latest periods, ending near 28,689 million US dollars in August 2025. The data suggest efforts to reduce leverage initially, with some renewed borrowing or debt increase in the final periods.

Total Capital

Total capital presented initially shows a dynamic pattern similar to total debt, starting around 47,060 million US dollars in May 2019 and rising to a peak of approximately 56,933 million in October 2021. After this peak, it sharply declines to around 23,860 million by October 2022, indicating either a significant change in equity or debt structure. From late 2022 into 2025, total capital maintains a relatively stable but lower range, fluctuating between 21,628 and 25,923 million US dollars. This decline and subsequent stability may reflect asset restructuring, capital depreciation, or shifts in financial strategy.

Debt to Capital Ratio

The debt to capital ratio demonstrates a gradual improvement during the early part of the data series, decreasing from 1.14 in May 2019 to a low of 0.84 in October 2021. This suggests a lowering of debt relative to capital, possibly reflecting debt reduction or capital increase efforts. However, post-October 2021, the ratio reverses course, increasing steadily up to approximately 1.15 by October 2022 and remaining consistently above 1.10 until August 2025. Ratios above 1 indicate that debt exceeds total capital, pointing to elevated financial leverage and potential risk concerns. This reversal indicates a shift towards higher indebtedness relative to the company's capital base.

Summary of Trends and Insights

The overall trend reveals two distinct phases. Initially, the company pursued a deleveraging strategy, lowering total debt and improving the debt to capital ratio, indicating a strengthened capital structure. The sharp decline in total capital post-October 2021 followed by increased debt to capital ratios suggests a period of financial restructuring, possibly involving asset disposition or increased borrowing. The persistently high debt to capital ratios in the later periods imply a sustained reliance on debt financing, which may raise concerns about solvency and financial flexibility. Monitoring leverage levels and capital stability will be critical going forward.

Total Debt

Total debt demonstrates a general declining trend from May 2019 through early 2022, dropping from approximately 53.5 billion US dollars to around 27 billion US dollars by January 2022. Following this period, the debt levels fluctuate moderately between 24.5 billion and 29 billion US dollars without a clear sustained directional trend. This indicates an overall reduction in leverage over the longer term, but with some short-term variability.

Total Assets

Total assets initially trend upwards from about 110 billion US dollars in May 2019 to a peak near 135.7 billion in October 2021. After this peak, a significant drop to approximately 88 billion US dollars occurs in early 2022. Subsequent quarters show asset levels stabilizing in the low 80 to high 80 billion dollar range with slight increases towards mid-2024, reaching close to 89 billion US dollars. This pattern suggests a possible asset restructuring or divestment event around early 2022, followed by relative stability.

Debt to Assets Ratio

The ratio of total debt to total assets declines steadily from 0.49 in May 2019 to a low of around 0.29 in January 2022, reflecting an improvement in the company's financial leverage position. After this trough, the ratio slightly rebounds and fluctuates modestly in the 0.30 to 0.34 range through mid-2024. Overall, this trend indicates enhanced solvency up to early 2022, with a moderate return to higher leverage ratios thereafter, but still below initial levels.

Overall Insights

The data reveals that the company reduced its total debt notably in the first few years while its asset base expanded and then contracted sharply in early 2022, suggesting a major structural change during that period. The improvement in the debt to asset ratio points to strengthening financial stability initially, with some normalization of leverage ratios in more recent periods. The fluctuating debt levels alongside a relatively stable asset base after 2022 may indicate a strategic balance between leveraging opportunities and risk management.

The financial data reveals several notable trends and fluctuations across the reported quarters.

Total Assets

The total assets show a general increasing trend from May 2019 through October 2021, rising from approximately 109.9 billion USD to a peak of about 135.7 billion USD. However, after this high point, there is a sharp decline in early 2022 down to around 92.7 billion USD, followed by some volatility with modest recoveries and declines through mid-2025. The asset base appears to stabilize somewhat towards the later periods, fluctuating in the approximate range of 79.7 billion to 89.2 billion USD.

Total Stockholders’ Equity (Deficit)

Stockholders’ equity exhibits considerable volatility and a shift from negative to positive values and back. Initially, the company reported significant deficits (e.g., -6.464 billion USD in May 2019). A marked improvement occurs between July 2020 and October 2021, where equity transitions from slight deficits to positive territory, peaking at approximately 8.954 billion USD in October 2021. Afterward, a steep reversal is observed with equity returning to negative figures consistently through 2022 and continuing to fluctuate negatively, ranging roughly between -3.469 billion USD and -1.482 billion USD. This suggests periods of financial restructuring or significant changes in the company’s capital or retained earnings during these intervals.

Financial Leverage Ratio

Data on financial leverage ratio is limited and only available for a subset of periods between January 2021 and May 2022. During this time, there is a clear declining trend from an extremely high leverage ratio (approximately 134.71) in January 2021 to a significantly reduced level of around 15.15 by May 2022. This indicates that the company substantially decreased its reliance on debt relative to equity during this period, potentially through debt reduction, equity increases, or asset sales. The absence of data for other periods limits a complete assessment of leverage throughout the full timeline.

Overall, the financial data reflect a complex situation with an initial growth in asset size peaking in late 2021, followed by a considerable contraction. The equity position’s fluctuations from negative to positive and back suggest episodes of financial restructuring or capital adjustments. The available leverage data indicate a significant deleveraging effort in early 2021 through mid-2022, aligning with the observed improvement in equity during that time. Subsequent periods suggest stability in asset size but persisting negative equity, which could imply ongoing challenges in achieving sustained profitability or capital structure normalization.