Analysis of Reportable Segments
Dell Technologies Inc. operates in 3 segments: Infrastructure Solutions Group (ISG); Client Solutions Group (CSG); and VMware.
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2019
- Return on Assets (ROA) since 2019
- Current Ratio since 2019
- Price to Earnings (P/E) since 2019
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Segment Profit Margin
Dell Technologies Inc., profit margin by reportable segment
| Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|---|
| Infrastructure Solutions Group (ISG) | ||||||
| Client Solutions Group (CSG) | ||||||
| VMware |
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).
- Infrastructure Solutions Group (ISG) Profit Margin
- The profit margin for this segment exhibited a slight decline from 11.78% in January 2020 to 10.87% in January 2022, indicating some downward pressure on profitability during this period. Subsequently, there was a notable improvement, with the margin increasing to 13.15% by February 2023. Following this peak, the margin slightly decreased to 12.65% in February 2024 but showed a modest recovery to 12.8% in January 2025. Overall, the ISG segment demonstrated resilience with a fluctuating yet generally improving profitability trend after 2022.
- Client Solutions Group (CSG) Profit Margin
- This segment's profit margin showed a gradual upward trend from 6.85% in January 2020 to a peak of 7.18% in February 2024. However, the margin experienced a decline to 6.14% by January 2025. The data suggests moderate variability within a relatively narrow range, with a slight overall improvement over the multi-year period until the recent decrease in 2025, which may indicate emerging challenges or changing conditions in this segment.
- VMware Profit Margin
- Profit margin data for VMware is available only for 2020 and 2021, showing an increase from 28.25% to 30.08%. This indicates strong profitability and positive momentum during the available timeframe. However, no subsequent data is provided, precluding analysis of trends beyond January 2021.
Segment Profit Margin: Infrastructure Solutions Group (ISG)
Dell Technologies Inc.; Infrastructure Solutions Group (ISG); segment profit margin calculation
| Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Reportable segment operating income | ||||||
| Reportable segment net revenue | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).
1 2025 Calculation
Segment profit margin = 100 × Reportable segment operating income ÷ Reportable segment net revenue
= 100 × ÷ =
- Reportable Segment Operating Income
- The operating income demonstrates fluctuations over the observed periods. Initially, it decreased slightly from 4001 million USD in 2020 to 3736 million USD in 2022, indicating a modest decline in profitability. However, a significant increase occurred in 2023, reaching 5045 million USD, followed by a minor dip to 4286 million USD in 2024. The latest figure from 2025 shows a strong recovery and the highest recorded operating income in the series at 5579 million USD. This pattern suggests a positive long-term trend with some volatility in the interim years.
- Reportable Segment Net Revenue
- Net revenue experienced a downward trend from 33969 million USD in 2020 to 32588 million USD in 2021, followed by a recovery to 34366 million USD in 2022. From this point, the segment showed consistent growth, reaching 38356 million USD in 2023, a notable decrease again to 33885 million USD in 2024, and a substantial increase to 43593 million USD in 2025. Overall, the net revenue reflects a generally upward trajectory with some periods of decline, particularly in 2021 and 2024.
- Segment Profit Margin
- The profit margin exhibits minor fluctuations but overall remains relatively stable. Starting at 11.78% in 2020, it shows a slight decline to 10.87% by 2022. Subsequently, there is a marked increase to 13.15% in 2023, followed by a decrease to 12.65% in 2024. The margin slightly improves again in 2025 to 12.8%. These changes indicate that the segment has maintained a healthy profit margin, with a peak in 2023 and moderate stability in subsequent years.
- Summary
- The data indicates that this segment has experienced periods of both revenue and operating income volatility, with revenue and operating income declining in the early years before rebounding significantly by 2023 and peaking in 2025. Profit margins have generally remained stable, showing resilience despite fluctuations in revenue and income levels. The overall trend suggests improving financial performance in the later years, supported by growth in both net revenue and operating income, and sustained profit margins around the 12% to 13% range.
Segment Profit Margin: Client Solutions Group (CSG)
Dell Technologies Inc.; Client Solutions Group (CSG); segment profit margin calculation
| Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Reportable segment operating income | ||||||
| Reportable segment net revenue | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).
1 2025 Calculation
Segment profit margin = 100 × Reportable segment operating income ÷ Reportable segment net revenue
= 100 × ÷ =
- Reportable Segment Net Revenue
- The net revenue for the segment exhibited an overall upward trend from 2020 through 2022, increasing from $45,838 million to a peak of $61,464 million. However, from 2022 onwards, a decline was observed, with revenue decreasing to $58,213 million in 2023, followed by a more pronounced drop to $48,916 million in 2024 and a slight further decline to $48,393 million in 2025. This indicates strong growth initially, succeeded by a period of contraction over the last three years.
- Reportable Segment Operating Income
- The operating income showed a generally volatile pattern. It initially increased from $3,138 million in 2020 to $4,365 million in 2022, reaching the highest level in this period. Subsequently, it declined to $3,824 million in 2023, then further decreased to $3,512 million in 2024, and continued downward to $2,972 million in 2025. This points to diminishing profitability despite fluctuations in revenue.
- Segment Profit Margin
- The profit margin fluctuated over the period, starting at 6.85% in 2020 and peaking at 7.18% in 2024. The margin demonstrated relative stability around the 7% level between 2020 and 2024 with minor variations. However, in 2025, the margin dropped notably to 6.14%, the lowest during the period provided. This decline aligns with the decreasing trend observed in operating income.
- Summary
- The segment experienced significant revenue growth up to 2022, followed by a sharp decline over the next three years. Operating income mirrored this pattern but declined more sharply in the latter years, suggesting increased cost pressures or lower operational efficiency. The profit margin remained fairly stable above 6.5% for most of the period, with a peak in 2024, but declined considerably in 2025. These trends may indicate increasing challenges in maintaining profitability amidst reduced revenue levels.
Segment Profit Margin: VMware
Dell Technologies Inc.; VMware; segment profit margin calculation
| Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Reportable segment operating income | ||||||
| Reportable segment net revenue | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).
1 2025 Calculation
Segment profit margin = 100 × Reportable segment operating income ÷ Reportable segment net revenue
= 100 × ÷ =
The analyzed data reveals the financial performance of a specific business segment over two consecutive annual periods, with particular focus on operating income, net revenue, and profit margin.
- Operating Income
- The operating income increased from 3,081 million US dollars in the first reported period to 3,571 million US dollars in the subsequent year. This represents a growth of approximately 15.9%, indicating enhanced profitability within the segment during this time frame.
- Net Revenue
- Net revenue rose from 10,905 million US dollars to 11,873 million US dollars between the two periods, marking an increase of about 8.9%. This upward trend suggests improved sales or service performance contributing to greater overall revenue generation.
- Profit Margin
- The segment profit margin exhibited a positive development, climbing from 28.25% to 30.08%. This improvement indicates a higher proportion of revenue being converted into operating profit, reflecting operational efficiency and potentially better cost management.
The absence of data for subsequent years restricts the ability to analyze longer-term trends or current performance beyond the second year. However, within the available timeframe, the segment demonstrates consistent growth in core financial metrics, signaling robust operational health and expanding profitability.
Reportable segment net revenue
Dell Technologies Inc., reportable segment net revenue by reportable segment
US$ in millions
| Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|---|
| Infrastructure Solutions Group (ISG) | ||||||
| Client Solutions Group (CSG) | ||||||
| VMware | ||||||
| Total |
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).
- Infrastructure Solutions Group (ISG) Trends
- The net revenue for the Infrastructure Solutions Group shows a mixed pattern over the analyzed periods. Initially, revenue declined slightly from 33,969 million USD in early 2020 to 32,588 million USD in early 2021. This was followed by a recovery and growth period, with revenues increasing to 34,366 million USD in early 2022 and further to 38,356 million USD in early 2023. However, in early 2024, there was a notable decrease to 33,885 million USD before a significant rebound to 43,593 million USD in early 2025. Overall, the segment demonstrates volatility but concludes with substantial growth compared to the starting point.
- Client Solutions Group (CSG) Trends
- The Client Solutions Group experienced steady growth from 45,838 million USD in early 2020 to a peak of 61,464 million USD in early 2022. This peak was followed by a decline, with revenues reducing to 58,213 million USD in early 2023 and dropping further to 48,916 million USD in early 2024. By early 2025, revenue stabilized slightly at 48,393 million USD. The segment showed strong growth initially but faced a contraction in the latter years, returning to levels similar to early 2020 by the end of the period.
- VMware Segment Revenue
- Data for VMware is only available for early 2020 and early 2021, showing an increase from 10,905 million USD to 11,873 million USD. No data is provided for subsequent periods, limiting further analysis of trends or impact on the total revenue figures.
- Total Revenue Overview
- Total net revenue across all segments showed gradual growth from 90,712 million USD in early 2020 to 96,569 million USD in early 2023. This was followed by a significant decline to 82,801 million USD in early 2024, before rising again to 91,986 million USD in early 2025. The overall trend indicates a peak in early 2023, a drop in 2024, and partial recovery thereafter, likely influenced by performance within key segments.
- Comparative Insights
- Comparing the two main segments, the Infrastructure Solutions Group displayed more pronounced fluctuations with a final increase above initial levels, while the Client Solutions Group showed strong early growth but retracted to earlier revenue levels by the end of the period. The absence of recent VMware data makes it difficult to assess its contribution to overall revenue changes in recent years. The total net revenue trend generally mirrors the combined fluctuations in these segments, reflecting both growth phases and periods of contraction.
Reportable segment operating income
Dell Technologies Inc., reportable segment operating income by reportable segment
US$ in millions
| Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|---|
| Infrastructure Solutions Group (ISG) | ||||||
| Client Solutions Group (CSG) | ||||||
| VMware | ||||||
| Total |
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).
- Infrastructure Solutions Group (ISG)
- The operating income of the Infrastructure Solutions Group exhibited fluctuations over the six-year period. Starting at 4001 million US dollars in early 2020, it decreased slightly in 2021 and 2022 to 3776 and 3736 million, respectively. However, a significant increase was observed in 2023, reaching 5045 million, followed by a decline to 4286 million in 2024, and then a notable rise again in 2025 to 5579 million, marking the highest value in the series.
- Client Solutions Group (CSG)
- The Client Solutions Group showed a varying trend with initial growth from 3138 million in 2020 to 3352 million in 2021, and a further substantial increase to 4365 million in 2022. This was followed by a decline in 2023 to 3824 million, with a continued decrease in 2024 to 3512 million, and a further reduction to 2972 million in 2025, indicating a downward trend during the latter part of the period.
- VMware
- Data for VMware is provided only for the years 2020 and 2021, showing an increase from 3081 million to 3571 million. No data is available for the subsequent years, preventing analysis of longer-term trends.
- Total Operating Income
- The total operating income across segments started at 10220 million in early 2020 and showed a modest increase to 10699 million in 2021. In 2022, there was a marked decline to 8101 million, followed by a partial recovery to 8869 million in 2023. However, the total declined again in 2024 to 7798 million before rising to 8551 million in 2025. Overall, the total operating income exhibited considerable volatility throughout the period.