Dell Technologies Inc. (NYSE:DELL)

Debt to Equity Ratio

The debt to equity ratio showed significant variability in the available periods. Starting from a very high value of 56.47, it saw a marked decline to 19.36, then continued a downward trend reaching 5.36 by the last recorded quarter. This suggests a substantial reduction in reliance on debt financing relative to equity over the observed timeframe, improving the company's capital structure stability.

Debt to Capital Ratio

This ratio started above 1.0, indicating that debt slightly exceeded total capital initially. It then declined steadily from 1.03 to a low of 0.84 before rising sharply back above 1.0, staying relatively stable around 1.1 in subsequent quarters. This pattern indicates fluctuating capital structure management, with periods of increased leverage followed by stabilization at a higher debt proportion.

Debt to Assets Ratio

The debt to assets ratio depicted a gradual decrease from 0.47 down to approximately 0.29, demonstrating a reduction in the proportion of assets financed through debt. Although some fluctuations occurred later, it generally stabilized around 0.31 to 0.33. This trend suggests improving asset financing resilience with moderate reliance on debt.

Financial Leverage Ratio

The financial leverage ratio underwent substantial decreases from very high values (above 100) to single digits, ending at 15.15 in the last available data point. The pronounced decline illustrates a significant reduction in the use of borrowed funds to amplify returns, indicating a shift toward more conservative leverage practices.

Total Debt

The total debt demonstrates an initial downward trend from May 2020 through July 2021, decreasing from approximately $56.7 billion to around $43.6 billion. A notable fluctuation occurs in October 2021, where debt increases sharply to close to $48.0 billion, followed by a significant reduction in January 2022 to about $27.0 billion. From there, the debt level remains relatively stable with minor fluctuations, hovering mostly between $25.0 billion and $29.0 billion through August 2025. A modest increase is observed in August 2025, reaching close to $28.7 billion.

Stockholders’ Equity (Deficit)

Stockholders’ equity starts in negative territory in May 2020 at approximately -$1.6 billion, shifts to positive figures reaching a peak of about $8.9 billion by October 2021. Following this peak, the equity value drops sharply back to negative values from January 2022 onwards. The deficit gradually worsens over subsequent quarters, with values fluctuating but generally trending downward, reaching about -$3.0 billion to -$2.8 billion by mid-2023 and maintaining this negative range through August 2025. The data indicates persistent equity deficits during the latter periods with some volatility but no sustained recovery to positive territory.

Debt to Equity Ratio

The debt to equity ratio is only reported for a limited set of initial quarters. It shows a substantial decrease over the first few quarters, starting from a very high ratio (not quantified in the earliest periods), before declining dramatically to around 56.47, then falling further to approximately 19.36, 13.39, 9.04, and ultimately 5.36, suggesting a significant improvement in the company's leverage position during this span. No data is reported for later periods, which may be due to negative equity figures impacting the reliability or relevance of the ratio.

Overall Trends and Insights

The company’s leverage exhibits a strong reduction in total debt from mid-2020 into mid-2021, followed by stabilization at lower debt levels. Stockholders’ equity improves sharply through 2021 but deteriorates throughout 2022 and beyond, remaining negative and indicating possible balance sheet concerns or accumulated losses. The debt to equity ratio improvements in early periods reflect successful deleveraging but are not consistently reported later, likely due to the equity deficit affecting ratio calculation. The persistent negative equity combined with stabilized debt levels implies ongoing financial challenges in capital structure and equity valuation.

The analysis of the financial ratios and capital structure over the reported periods reveals several notable trends and fluctuations in the company's debt and capital management.

Total Debt (US$ in millions)

The total debt showed a general downward trend from May 2020 through July 2021, decreasing from 56,728 million to 43,594 million. Following this period, there was an increase, especially notable in January 2022 where debt dropped sharply to 26,954 million and then mostly stabilized around the 25,000 to 29,000 million range through August 2025. This indicates an initial period of deleveraging, followed by relative stability albeit with moderate fluctuations toward later periods.

Total Capital (US$ in millions)

Total capital closely mirrors the trends observed in total debt, beginning at 55,114 million in May 2020 with a decline to approximately 48,419 million in July 2021. Thereafter, it experienced a significant decrease in January 2022 to 25,269 million and then remained mostly stable in the low to mid-20,000 million range with slight increases and decreases through August 2025. The reduction in capital corresponds with the reduction in debt, suggesting contraction in both forms of financing over time.

Debt to Capital Ratio (ratio)

Initially, the debt to capital ratio decreased from 1.03 in May 2020 to 0.84 in October 2021. This suggests a reduction in leverage relative to capital during this period. However, starting in January 2022, the ratio sharply increased beyond 1.0, peaking at 1.15 in October 2022 and maintaining levels above 1.0 to the present, indicating debt exceeds total capital consistently. This shift implies a higher leverage position with debt constituting more than total capital, reflecting a more leveraged financial structure from 2022 onward and potentially increased financial risk.

In summary, the company initially reduced its debt and capital base, leading to lower leverage ratios up to late 2021. After this turnaround, there was a marked increase in leverage with debt exceeding total capital, indicating a strategic change in capital structure or operational circumstances affecting financing. This higher leverage persisted into the most recent reported periods, suggesting an increased reliance on debt financing relative to the company's capital.

Total Debt

The total debt exhibits a fluctuating downward trend over the observed periods. Initially, total debt decreases from about $56.7 billion to a low point around $25 billion between early 2022 and mid-2024. Subsequently, it shows a slight increase toward the end of the timeline, rising back to approximately $28.7 billion. This pattern suggests an overall effort to reduce leverage initially, followed by some increase in borrowing or other debt-financing activities more recently.

Total Assets

Total assets demonstrate significant volatility throughout the timeframe. Early data indicate asset values consistently above $120 billion, peaking at approximately $135.7 billion in late 2021. From early 2022 onward, there is a marked decline in total assets to values below $82 billion, with occasional rises, ending near $89.2 billion in late 2025. The asset fluctuations appear to correlate with changes in total debt but show larger variability.

Debt to Assets Ratio

The debt-to-assets ratio shows a gradual declining trend from approximately 0.47 to a low near 0.29 by early 2022, indicating a reduction in leverage relative to assets. Following this low, the ratio fluctuates within a narrow band from around 0.30 to 0.34, with no clear upward or downward trend in the latter periods. This stability implies a more balanced approach to managing debt against asset base after the initial reduction phase.

Overall Analysis

The data reflect a strategic reduction in total debt and relative leverage from 2020 through early 2022, coinciding with shrinking total assets. The subsequent period shows a stabilization of the debt-to-assets ratio, despite some increases in absolute debt levels and fluctuating asset values. This suggests a shift from aggressive deleveraging toward maintaining a consistent capital structure. The observed variations could be influenced by operational, market, or financing factors impacting asset valuations and debt management strategies.

The analysis of the quarterly financial data reveals several notable trends and patterns regarding the company’s financial position and leverage over the observed periods.

Total Assets

Total assets show fluctuations across the reported time frame, beginning at approximately 120 billion USD and exhibiting some volatility thereafter. A significant drop is observable from the October 2021 period to January 2022 where assets decreased from about 136 billion USD to 92.7 billion USD. Following this decline, total assets generally remained below 90 billion USD with minor fluctuations, ending near 89 billion USD in August 2025. This suggests a contraction or possible divestment in asset base after a peak in late 2021, followed by a period of relative stabilization at lower asset levels.

Total Stockholders’ Equity (Deficit)

Stockholders’ equity shows a highly variable and generally negative trend over the quarters. Initial values range between negative 1.6 billion USD to positive 8.9 billion USD, with a peak in late 2021. From January 2022 onwards, equity appears predominantly negative, fluctuating between negative 3.9 billion USD and about negative 1.5 billion USD, with no sustained positive equity recorded in the latter part of the dataset. The persistent negative equity levels could indicate sustained accumulated losses or significant liabilities exceeding assets, leading to a deficit position during these periods.

Financial Leverage

Data on financial leverage ratios is only available for a limited period (between October 2020 and January 2022). The ratio exhibits a sharp decrease from an exceptionally high level of approximately 135 times to a much lower value of about 15 times over these quarters. This steep decline indicates a significant deleveraging effort or reduction in the proportion of debt used relative to equity during this period. Absence of leverage data in subsequent periods precludes analysis beyond this timeframe.

In summary, the company experienced an initial growth in assets leading up to late 2021, followed by a marked contraction thereafter. The equity position moved from slight positive to persistently negative in recent quarters, indicating financial pressure or accumulated losses. Early observations of financial leverage suggest a reduction in debt reliance during the transition from 2020 to 2022, though later data is not sufficient to evaluate continued trends. These dynamics collectively suggest challenges in maintaining equity and asset base stability in recent fiscal periods.