Dell Technologies Inc. (NYSE:DELL)

Gross Profit Margin

The gross profit margin exhibited a notable decline from 31.4% in early 2020 to 21.63% in early 2022. Following this decrease, a moderate recovery trend emerged, reaching 23.6% in early 2024 before slightly reducing to 22.24% in early 2025. Overall, the margin remained significantly below the initial 2020 level after the drop.

Operating Profit Margin

The operating profit margin showed a generally improving trend over the observed periods. Starting at a relatively low 2.85% in 2020, it more than doubled to 5.46% in 2021. Although there was a slight decrease to 4.6% in 2022, the margin subsequently increased steadily, reaching 6.53% by 2025, indicating enhanced operational efficiency or cost management over time.

Net Profit Margin

The net profit margin fluctuated notably during the period. It started at 5.01% in 2020, then declined to 3.45% in 2021, before rising again to 5.5% in 2022. This was followed by a significant drop to 2.39% in 2023, after which the margin improved to 4.81% by 2025. These variations indicate volatility in profitability after accounting for all expenses and income taxes.

Return on Equity (ROE)

Return on equity is only available for the 2021 period, where an exceptionally high value of 131.1% is reported. The lack of data for other years prevents trend assessment; however, the 2021 figure may suggest an extraordinary event or one-time factor impacting shareholder returns during that year.

Return on Assets (ROA)

Return on assets showed variability but an overall upward trend. It decreased from 3.88% in 2020 to 2.63% in 2021, then increased sharply to 6% in 2022. After dipping again to 2.73% in 2023, ROA improved significantly in subsequent years, reaching 5.76% in 2025. This pattern suggests fluctuating asset utilization efficiency, with recent years indicating improved effectiveness in generating profit from assets.

The financial data reveals several notable trends over the reported periods.

Net Revenue

Net revenue showed an overall upward trend from $92,154 million in 2020 to a peak of $102,301 million in 2023, indicating growth in the company's top-line sales during this period. However, a decline followed in 2024 to $88,425 million before recovering somewhat to $95,567 million in 2025. This fluctuation suggests some volatility in sales, with a notable dip after 2023.

Gross Margin

The gross margin displayed a different pattern, starting at $28,933 million in 2020 and remaining relatively stable at $29,417 million in 2021. Thereafter, it decreased significantly to $21,891 million in 2022 and remained at similar lower levels through 2023 to 2025, ending at $21,250 million. This decline in gross margin indicates reduced absolute profit from core operations despite the initial revenue growth.

Gross Profit Margin Percentage

The gross profit margin percentage correlates with the gross margin trends but provides a clearer picture of profitability efficiency. The margin declined sharply from 31.4% in 2020 to approximately 21.63% in 2022. Despite slight improvements to 23.6% in 2024, it remained below the 2020-2021 levels, finishing at 22.24% in 2025. This indicates that the company faced challenges in maintaining profitability on its revenues, with a significant erosion in gross profit margin percentages over the years.

In summary, although net revenue initially expanded, the company's gross margin and gross profit margin percentage both declined notably, signaling pressure on cost management or pricing power. The recovery in net revenue towards 2025 was not accompanied by a corresponding improvement in profitability ratios, highlighting a potential area for strategic focus to enhance operational efficiency or cost control.

Operating Income Trend

The operating income exhibited a generally upward trajectory over the observed periods. Starting from 2,622 million US dollars in early 2020, it significantly increased to 5,144 million by early 2021, followed by a slight decrease to 4,659 million in early 2022. After this dip, operating income resumed growth, reaching 5,771 million in early 2023, experiencing a minor decline to 5,211 million in early 2024, and then rising notably to 6,237 million by early 2025. Overall, the trend suggests increasing profitability from operations with some fluctuations.

Net Revenue Pattern

Net revenue displayed an initial increase from 92,154 million US dollars in early 2020 to a peak of 102,301 million in early 2023. However, this peak was followed by a decline to 88,425 million in early 2024 before rebounding to 95,567 million by early 2025. The variations indicate a period of growth interrupted by a setback in 2024, after which revenue showed signs of recovery.

Operating Profit Margin Analysis

The operating profit margin improved steadily throughout the periods analyzed. It started relatively low at 2.85% in early 2020, almost doubling to 5.46% in early 2021. Although there was a slight decline to 4.6% in early 2022, the margin increased again to 5.64% in early 2023, followed by incremental gains to 5.89% in early 2024 and reaching 6.53% in early 2025. This consistent increase indicates enhanced operational efficiency and profitability relative to revenue.

Overall Insights

The data reflects a company successfully improving its operational profitability despite some revenue volatility. The consistent rise in operating profit margin suggests effective cost management or improvement in product mix. Although net revenue declined in one period, the operating income and margin still showed resilience, underlining robust operational performance. The fluctuations in revenue alongside increasing profitability might warrant further analysis to understand underlying causes, such as market conditions or strategic shifts.

Net Income Attributable to Dell Technologies Inc.

The net income displayed notable fluctuations over the periods analyzed. Initially, net income decreased from 4,616 million USD in early 2020 to 3,250 million USD in early 2021. This was followed by a substantial increase to 5,563 million USD in early 2022. Subsequently, net income declined sharply again to 2,442 million USD in early 2023 before recovering to 3,211 million USD in early 2024 and further increasing to 4,592 million USD in early 2025. Overall, the net income demonstrates a volatile yet generally positive recovery trend after the dip observed in 2023.

Net Revenue

Net revenue showed a general upward trajectory from 92,154 million USD in early 2020 to a peak of 102,301 million USD in early 2023. However, revenue significantly decreased to 88,425 million USD in early 2024 before partially rebounding to 95,567 million USD in early 2025. The data suggests some sensitivity to external or market conditions post-2023, impacting revenue.

Net Profit Margin

The net profit margin mirrored the trends seen in net income, with considerable variability. Starting at 5.01% in early 2020, the margin declined to 3.45% in early 2021 and then improved to 5.5% in early 2022. Following this, it fell markedly to 2.39% in early 2023, consistent with the net income decline, before increasing again to 3.63% in early 2024 and 4.81% in early 2025. This indicates fluctuating profitability relative to revenues, likely influenced by cost management, pricing strategies, or operational efficiency factors.

The financial data reveals notable fluctuations in net income attributable to the company over the six-year period. Initially, net income decreased from 4,616 million USD in early 2020 to 3,250 million USD in early 2021. This was followed by a significant increase to 5,563 million USD in early 2022. However, the subsequent years showed a decline to 2,442 million USD in early 2023, then a recovery to 3,211 million USD in early 2024, and further improvement to 4,592 million USD in early 2025.

Stockholders’ equity presents a contrasting trend with persistent negative balances in most years, indicating a deficit. Starting with a deficit of 1,574 million USD in early 2020, equity turned positive to 2,479 million USD in early 2021, before reverting to negative figures in the following years: -1,685 million USD (2022), -3,122 million USD (2023), -2,404 million USD (2024), and -1,482 million USD (2025). This pattern indicates volatility in the company's net asset position, which may suggest challenges in maintaining a stable equity base.

The return on equity (ROE) metric was reported only in the year ending January 29, 2021, showing a very high value of 131.1%. The absence of this measure in other years limits the ability to assess profitability relative to equity comprehensively over time. Given the fluctuating negative and positive equity values, and the incomplete ROE data, deriving consistent insights about equity efficiency is constrained.

Net Income Attributable to Dell Technologies Inc.

The net income demonstrates notable fluctuations over the examined periods. It initially declined from 4616 million USD in early 2020 to 3250 million USD in early 2021. This was followed by a significant increase to 5563 million USD in early 2022. The figure then dropped sharply to 2442 million USD in early 2023 before rising again steadily to 3211 million USD in early 2024 and further to 4592 million USD in early 2025. Overall, the net income shows considerable volatility but tends to recover after downturns.

Total Assets

Total assets present a consistent downward trajectory throughout the reported years. Starting at 118,861 million USD in early 2020, the assets decreased progressively each year to reach 79,746 million USD by early 2025. This continuous reduction suggests a shrinking asset base or increased asset disposals during the period.

Return on Assets (ROA)

The ROA ratio exhibits corresponding fluctuations reflecting changes in profitability relative to assets. It began at 3.88% in early 2020, dropped to 2.63% in early 2021, and then surged to 6% in early 2022. This was followed by a decline to 2.73% in early 2023. Subsequently, ROA improved to 3.91% in early 2024 and further to 5.76% in early 2025. These variations align with the oscillations in net income and the steady decline in total assets, indicating shifting efficiency in asset utilization to generate profits.